The New York Times has released a detailed report outlining the power struggle between Bob Chapek and Bob Iger as Chapek attempted to take over as CEO of The Walt Disney Company in 2020.

Chapek vs. Iger

By speaking with “scores of people” involved with the tumultuous time at The Walt Disney Company between Bob Chapek’s rise to CEO in 2020 to his firing in 2022, The New York Times has provided a detailed report of the power struggle between Chapek and Iger during one of the most difficult periods in the history of the company.

The transition from Iger to Chapek as CEO of The Walt Disney Company was anything but smooth. To those on the inside, it looked as though Iger didn’t truly want to relinquish his power over the company, despite wanting to officially step down as CEO.

While Chapek felt that he had the support of Iger in many ways, it was clear when he became CEO that the two were not seeing eye-to-eye on many things. That included what Chapek would be in charge of.

One of the first matters to drive a wedge between the men was when Chapek wasn’t named to the Board of Directors. It was an unusual decision as almost all chief executives serve as board members. Additionally, Iger stayed on as executive chairman and chief creative officer. Because of this, Chapek was forced to answer to both Iger and the board.

Despite the strange circumstances, Chapek accepted the terms. In an initial meeting between him and Susan Arnold, who has served as the Chairwoman of The Walt Disney Company since December 31, 2021, Chapek was issued a warning.

Give him a wide berth. Don’t step on his toes.

After Chapek took over as CEO on February 25, 2020, Iger continued to make huge decisions for the company. When the COVID-19 pandemic impacted domestic Disney Parks, California Governor Gavin Newsom called Iger to discuss keeping the parks open. Iger told him that the parks should close for safety reasons. While Chapek agreed with the decision, he was given no input in the matter.

Shortly thereafter, Chapek and chief financial officer Christine McCarthy decided to furlough 90,000 employees at the theme parks, but Iger insisted they wait until the CARES Act was signed into law. When Iger’s decision won out, Chapek’s wife referred to Chapek as Iger’s “lap dog.”

When New York Times’s media columnist Ben Smith released a column detailing a conversation he’d had with Iger, in which Chapek was shown in a negative light, Chapek was furious. Arnold was taken aback by Chapek’s reaction to the article and urged him to calm down and defer to Iger. She felt he was being paranoid that Iger was trying to destroy him.

To show support for Chapek, the board finally named Chapek a director.

Shortly after becoming a board member, Chapek decided to strip the creative heads of authority, preventing them from determining spending and distribution for their projects. This essentially served as a demotion for all of them. While Chapek was warned by at least a dozen senior Disney executives that the reorganization was a bad idea, he was given strong backing by the board to move forward with Disney Media and Entertainment Distribution.

Reportedly, Iger raised questions but didn’t have standing within the room to make any meaningful changes.

At Destination D23 in 2021, Chapek reportedly pulled out as a speaker out of fear that fans would boo him. He claimed it was because of a last-minute commitment. That last-minute commitment was Iger’s farewell party. The New York Times implies that Iger didn’t want Chapek to host his party, so he instead decided to have it when he knew that Chapek would be unavailable. Ultimately, Chapek went to the party anyway.

In March of 2022, The Walt Disney Company released a statement intending to veto the controversial “Don’t Say Gay” bill, a.k.a. HB 1557 or the Parental Rights in Education bill. The problem wasn’t Chapek’s stance, it was that he only spoke up after a poor company response to his statement that “corporate statements do very little to change outcomes.” After all, Iger had denounced the bill one month before Chapek said anything. To make matters worse for Chapek, Florida Governor Ron Desantis vehemently opposed the statement from The Walt Disney Company which led to the repeal of the Reedy Creek Improvement Act.

While Iger never said the board should fire Chapek, Chapek could feel that things were not going well for him. He is said to have told Arnold that he was worried things were going to get worse and Iger was going to be more vocal about his dislike for him.

As the issues continued to pile up, it was Chapek’s former allies McCarthy and Arnold, who ultimately betrayed him. Without consulting Chapek, McCarthy entered board meetings with numbers and forecasts that showed the direction of The Walt Disney Company. Chapek wasn’t present for the meetings where these conversations took place, because he was petting hippos at Disney’s Animal Kingdom. The figures presented were the final puzzle piece that led to Chapek’s firing.

As Chapek prepared to go to the Elton John concert being live-streamed on Disney+, Arnold called him to inform him that he was no longer the CEO of The Walt Disney Company. When asked why he was being fired and wasn’t being given the option to resign, Arnold told him that the board had lost faith in him.

After his firing, Chapek hired Bryan Freedman, who advised him he had a very strong claim against Iger because Iger was interfering with Chapek’s ability to do his job. Ultimately, Chapek elected not to seek legal action because his family is a “Disney family” and he didn’t want to hurt the company.

Finding a New Successor

Iger recently revealed that he is obsessed with finding his replacement as the CEO of The Walt Disney Company. After the unsuccessful hiring of Chapek, it’s clear that Iger and the rest of The Walt Disney Company want to ensure they make the right decision when Iger’s contract is up.

At the end of August 2024, James Gorman of Morgan Stanley was named the leader of the committee responsible for finding Iger’s replacement. Iger’s contract runs through December 2026, so the company has a little more than two years to find his successor. The list has reportedly been narrowed down to four names.

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