Is Bob Iger the savior some have made him out to be or is he really and truly a secret saboteur?

After Bob Chapek took over the role of Disney CEO, a number of big changes hit the Company. Rumors circulated of Iger’s return to make some adjustments. Iger claimed these were false, saying “You can’t go home again. I’m gone.” But that would prove to be untrue. Stories began to circulate about how Iger reportedly regretted picking Chapek as his successor. Chapek was ultimately ousted and Iger returned as CEO in 2022. Details about the transition from Iger to Chapek have long been discussed. But new information has since been shared.

CNBC has shared an article all about the transition from Iger to Chapek back to Iger, with an eye to the future of Disney, based on conversations had with more than 25 people who worked with Iger and Chapek at Disney from 2020 and 2022.

Bob Iger initially became CEO in 2005. He postponed his retirement MANY times, ultimately serving as CEO until 2020. In 2020, Iger suddenly announced that he would be stepping down and Chapek would assume the CEO position. This came as a shock to many, including some within the Disney Company who Iger had worked closely with. Iger wouldn’t be totally gone though. The agreement allowed Iger to stay on through 2021 as Executive Chairman of the Board.

Let’s start with what has already been shared in the past.

Why Iger Suddenly Stepped Down

According to Business Insider, one executive indicated that Iger simply “got tired of all the things you have to do” and wanted to “play around with creative” and not focus as much on the business side of things.

Some have disputed this, however, saying that Iger just felt the Company was in good shape for a handoff. Iger himself said that he felt it was time because he was feeling like he was starting to listen “less and maybe with a little less tolerance of other people’s opinions, maybe because of getting a little bit more overconfident in [his] own.”

But things get interesting when you take a closer look at what happened behind the scenes as Iger transitioned the CEO position to Chapek.

The Office

Things start with the CEO office — yes, the physical office space for the CEO at Disney. Apparently, the CEO office Iger inherited from the executive that preceded him (Michael Eisner) was special for one specific reason — it had a private shower (along with a vanity for shaving).

Iger reportedly had “no interest in moving out” of that office when he left the CEO role. Iger reportedly would wake up at 4:15AM to work out and shower. And if he worked later into the evening and needed to go straight from the office to a Disney premiere or award show, he could take a second shower right there in his office.

Some people said that Iger told Chapek he lived for those “two-shower days.” According to CNBC, both Iger and Chapek “agreed Chapek wouldn’t have much need for the office shower; Chapek would instead move into a smaller office on the same floor.”

Iger’s office also sported a very interesting poster in that bathroom. It was a spoof of the movie poster for a 1975 Clint Eastwood movie called “The Eiger Sanction.” The poster in Iger’s office featured Iger instead of Eastwood and the title was “The Iger Sanction.”

Curious to know what “The Eiger Sanction” is all about? According to CNBC, it’s about an assassin who comes out of retirement for a last job. Curious…

Picking Chapek

In some ways, it seems Iger did initially think that Chapek would really be the right person for the role. Chapek had been at Disney for years, and he had “earned Iger’s respect as a shrewd cost-cutter and a low-drama manager.”

Each of the divisions that Chapek led in Disney (home video, consumer products, and parks) had “soared under his watch.” But Iger would reportedly later say that he mistook Chapek’s “operational track record for leadership skills.”

So where did things go wrong? CNBC argues that on a day-to-day basis, Iger actually worked closer with other executives. When Iger first told Chapek he could be a potential CEO successor (in 2017), Chapek was meant to meet board members one-on-one. But that never happened.

Iger extended his time as CEO at Disney and by the time 2020 rolled around, no one-on-one board member meetings with Chapek were conducted. Chapek had been recommended for the position by Iger and Susan Arnold (Disney’s lead independent director) and Chapek got the job.

Iger also reportedly “never consulted anyone who worked directly for Chapek in the runup to naming him CEO.”

Why might Iger have moved so quickly in 2020 to get out of the CEO role? Business Insider has previously indicated that the Board kept pushing Iger for more details on his succession plan, and Iger reportedly pushed for Chapek as CEO, despite other candidates being tossed around.

One person indicated that Iger “was tired of being harangued about [succession] and said, ‘Fine, you guys have someone else run the business.’”

An “Unusual” Succession Plan

Perhaps Iger wasn’t all that worried about the situation since he had an “usual” succession plan set up. Chapek would serve as CEO, but Iger would stay on as Executive Chairman and would run “creative endeavors” in this role.

This was similar to the plan Eisner had hoped to make for himself, where Iger would take over as CEO while Eisner continued as chairman. The plan reportedly didn’t work out for Eisner because he had “lost his grip on the board.”

At that time, some directors resigned and said, “Any arrangement that permits Mr. Eisner to remain as Chairman after relinquishing his position as CEO is contrary to best governance practices.” So Iger became CEO without having Eisner “hovering over his shoulder.”

That gave Iger the freedom to move fast on decisions Eisner might not have agreed with — but Chapek didn’t get that same benefit. Unlike Eisner, Iger had the full support of the Board and stayed on as Chairman, which may have impacted the transition.

Cynical Reasoning

According to CNBC, some Disney executives have privately speculated that Iger actually “chose Chapek because he wouldn’t rival him in either charisma or celebrity — or, more cynically, because he was unlikely to eclipse Iger’s glittering record at the company.”

Iger and Chapek are very different people. One person jokingly described Chapek as a “tuna salad sandwich who sits in front of spreadsheets.” He’s been described as someone who is “not a schmoozer,” while Iger is known for being charismatic and having a good relationship with celebrities, executives, and more.

Could Iger have sought someone who wouldn’t overshadow his own legacy?

Little Hints

CNBC details some little things that might have been problematic for the entire transition progress.

For example, CNBC says that “When Iger announced his departure to staff on Disney’s Burbank studio lot, he jokingly called himself “Big Bob” and Chapek “Little Bob,” a light reminder to employees about who was still the boss.”

CNBC also reports that in 2020, just about 2 weeks after Chapek took over as CEO, Iger “caught Chapek off guard” and told him that Chapek would lead the question-and-answer portion of the meeting. Then Iger reportedly got perplexed when Chapek wanted to do some studying on his own rather than simply prepare with Iger.

When it came to COVID-19, Iger reportedly told a New York Times columnist, “A crisis of this magnitude, and its impact on Disney, would necessarily result in my actively helping Bob and the company contend with it, particularly since I ran the company for 15 years!”

Chapek was furious. According to CNBC, he called Iger, told him he didn’t need a savior, and maybe even dropped a “carefully placed expletive or two.”

Soon after, Chapek demanded a seat on the Board of Directors immediately — something that had been promised to him without a specific date. He was quickly granted one. Reportedly Susan Arnold had a “strongly worded conversation with Iger about setting him up for success rather than undermining him.”

When it came to streaming, Chapek ultimately created the Disney Media and Entertainment Distribution division to handle movie and TV show budgets. Chapek discussed the restructuring with Iger and Iger “didn’t try to stop Chapek’s plan, but he also didn’t give it his full endorsement.”

According to CNBC, “Chapek couldn’t tell whether Iger’s questions were a passive-aggressive way to signal disapproval or a genuine attempt to get more information.”

It seems that in private Iger would tell other executives that he did not agree with the reorganization, but Chapek would only hear this feedback indirectly. Ultimately, when Iger returned as CEO, he would call DMED a “mistake” in an interview with CNBC and implement a restructuring that would provide “greater authority to our creative leaders.”

Increasing Tension

There were other signs of tension between Chapek and Iger. At Iger’s goodbye party, he reportedly thanked dozens of people but not Chapek. According to CNBC, “It was humiliating, but Chapek told friends he felt relieved the tension was out in the open.”

Once Iger left, Chapek moved into the bigger office and made a multitude of changes. Privately, Iger reportedly “continued to talk with past and present Disney executives about Chapek and the future of the company, with several urging him to return to Disney.”

Iger’s Return

Ultimately, Iger returned as CEO in 2022 and Chapek was removed. According to CNBC, Iger has said “that he had failed to vet his successor properly and that he won’t confuse operational track record for leadership again.”

Iger is currently set to stay at Disney through 2026 and the Board has started to search for the next CEO. But time is ticking. Who will ultimately become the next CEO and will the succession run more smoothly this time? We’ll have to wait and see.

Stay tuned for the latest updates.

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