After just four months with The Walt Disney Company, Geoff Morrell is out as Disney’s Senior Executive Vice President and Chief Corporate Affairs Officer. According to a memo sent to employees, the role will now be filled by relative Disney newcomer, Kristina Schake. Schake made headlines earlier this month when she was named Disney’s Head of Global Communications. She was originally going to report directly to Morrell, but we are now learning that she will be taking his place.
While some may not know Morrell by name, they may know him as the person who leaked the opening of Walt Disney World’s newest roller coaster, Guardians of the Galaxy: Cosmic Rewind. As an Executive, Morrell was able to ride the attraction early. He shared his excitement for the ride on Twitter in February and said that it would be opening Memorial Day Weekend. Disney had not announced an opening at the time and Morrell quickly deleted the tweet, then sent out the same tweet, without the opening date. Disney did not confirm the Memorial Day Weekend opening until April.
Disney CEO Bob Chapek sent the following memo to employees, announcing Morrell’s departure. The memo was shared with Deadline:
Disney’s communications team, which until now was led by Morrell, had been struggling for weeks. Many were criticizing the company for its lack of a statement on Florida’s controversial Parental Rights in Education Bill. The company stayed quiet and only spoke out after mounting pressure. Even though they spoke out, many felt that it was too late and that the company they loved didn’t support them. There were a number of walkouts and protests.
Disney’s choice to make a firm statement against the bill only led to a new set of problems. Its denunciation of the bill angered Florida Governor Ron DeSantis and his fellow Florida Republicans. They were so upset that they created and passed a bill dissolving Reedy Creek and stripping Disney of its self-governing powers starting in 2023. The legality of the bill is still being debated. To many insiders, Morrell’s departure had been looming on the horizon for some time.
Morrell also sent an email to employees, saying, “After three months in this new role, it has become clear to me that for a number of reasons it is not the right fit.”
The battle between Disney and the state of Florida has just gone up another notch. On Tuesday, April 19, the Florida state legislature held a special legislative session to focus on redistricting. Before the session began, Florida Governor Ron DeSantis made a public statement asking the legislature to consider terminating all special districts that were created in the state prior to 1968. This would include the Reedy Creek Improvement District — which is run by Disney.
The Walt Disney Company and Florida have been at odds for weeks over the passing of Florida’s controversial Parental Rights in Education bill. The bill is also called the “Don’t Say Gay” bill, and its critics believe that it will target the LGBTQ community. Disney CEO Bob Chapek has spoken out against the bill and has promised to work with local advocates to see that the bill is repealed. Disney has also paused all political donations in the state, but that did not happen until the company had donated more than $100,000 to state republicans.
For his part, Governor DeSantis has made it clear that Disney does not run the state, and he will enact whatever legislation he deems necessary, regardless of Disney’s stance on the issue. DeSantis also said that he would consider supporting legislation that would repeal the Reedy Creek Improvement Act. The act was passed in 1967 and basically allowed Walt Disney World Resort to function as its own government.
“I am announcing today that we are expanding the call of what they are going to be considering this week. And so, yes they will be considering the congressional map, but they also will be considering termination of all special districts that were enacted in Florida prior to 1968, and that includes the Reedy Creek Improvement District.”
While some see the move as taking the power back from Disney — which has wielded a ton of power in the state since the theme parks opened — others see the move as incredibly shortsighted. Right now, when Disney wants to make improve things like roads and street signs, it pays for it. Disney is also responsible for any issues with its electricity and Wi-Fi. It also pays for its own police and medical staff. Should the state decide to repeal the Reedy Creek Improvement Act, Florida taxpayers would then be responsible for those costs.
Disney has not commented on Governor DeSantis’ comments or the potential repeal of the Reedy Creek Improvement Act.
The culture war rages on between the State of Florida and Disney, and there seems to be no sign of white flags of surrender waving in the breeze anytime soon.
On Thursday, Governor Ron DeSantis responded to the suggestion that Florida should repeal a 55-year-old state law that essentially lets Disney govern itself on Disney World property. The suggestion has been made in response to Disney’s loud opposition to House Bill 1557, the Parental Rights in Education Bill.
“What I would say as a matter of first principle is I don’t support special privileges in law just because a company is powerful and they’ve been able to wield a lot of power,” DeSantis said during a press conference West Palm Beach, Florida on Thursday.
For weeks, Disney’s CEO was silent about the bill, which prohibits classroom instruction on “sexual orientation” and “gender identity” with children in third grade or younger, “or in a manner that is not age-appropriate or developmentally appropriate for students in accordance with state standards.” But it does not prohibit casual discussion about those topics.
Despite its being branded the “Don’t Say Gay” bill by critics of the legislation, the bill does not ban the word “gay” in any school setting whatsoever. It doesn’t ban casual discussions about sexual orientation or gender identity in the classrooms. Further, it does not require schools to notify parents if a student identifies as gay or transgender.
But CEO Bob Chapek spoke out against the bill, and since that time, Disney has been in a war of words with Florida Republicans. On Monday, Governor Ron DeSantis signed the bill into law, much to the frustration and dissatisfaction of some, including some of Disney’s employees.
But according to a current Disney employee and Congressional candidate, the majority of Disney’s employees are in favor of the bill. Jose Castillo says that Disney’s only listening to the small group who opposes the bill.
“Disney and similar corporations listen to the loudest voices in the crowd,” Castillo explained. “That is why I am standing up for our shared conservative values; to show other conservative Cast Members like me that we need to speak up and stand strong.”
“I think what has happened is there’s a lot of these special privileges that are not justifiable, but because Disney had held so much sway, they were able to sustain a lot of special treatment over the years,” DeSantis explained.
Gov. DeSantis went on to say that Disney has “lost a lot of the pull that they used to have” over the company’s opposition to the Parental Rights in Education bill. The governor said it’s his opinion that it’s a “good thing for our state because the state should be governed by the best interest of the people.”
“I would say any special privileges that are in law I would like to get rid of generally,” DeSantis added. “I think in this particular case with Disney, I just don’t think you have very many people in the legislature anymore who are going to be able to defend a lot of what has been done over many years to really have them almost govern themselves in some of these things. That was probably never appropriate to start.”
DeSantis says it’s “certainly not appropriate now at this point” for Disney to self-govern.
In response to Disney’s recent opposition, Florida State Representative Spencer Roach has already met with lawmakers about repealing the law that allows Disney to govern itself.
“Yesterday was the 2nd meeting in a week w/fellow legislators to discuss a repeal of the 1967 Reedy Creek Improvement Act, which allows Disney to act as its own government,” Roach tweeted. “If Disney wants to embrace woke ideology, it seems fitting that they should be regulated by Orange County.”
On Monday, Disney released a statement after the school-related bill was signed into law.
“Florida’s HB 1557, also known as the ‘Don’t Say Gay’ bill, should never have passed and should never have been signed into law,” Disney said in the statement. “Our goal as a company is for this law to be repealed by the legislature or struck down in the courts, and we remain committed to supporting the national and state organizations working to achieve that. We are dedicated to standing up for the rights and safety of LGBTQ+ members of the Disney family, as well as the LGBTQ+ community in Florida and across the country.”
In response to Disney’s criticism, DeSantis said on Monday that Disney had “crossed the line.”
“This state is governed by the interest of the people of the state of Florida,” said DeSantis. “It is not based on the demands of California corporate executives. They do not run this state. They do not control this state.”
Unless you have been staying completely clear of news and social media for the past few weeks, then you know that The Walt Disney Company and the state of Florida have been in a heated battle. Florida recently passed the Parental Rights in Education bill, dubbed the “Don’t Say Gay” bill, and Disney has been outspoken in its opposition. Disney has even said that they will work with Florida politicians and lawyers to help ensure that the bill is repealed if and when it goes to the courts.
Disney’s objection to the bill has not sat well with those who believe Disney should stay out of politics. There are also those who believe that Disney is moving far away from the wholesome, family-friendly entertainment the company is known for. They are also upset with Disney executives claiming that their content in the coming years will feature a lot more characters who are minorities and members of the LGBTQ+ community. Disney’s detractors have also accused Disney of being “woke” and believe it will be the downfall of the company — which led to the popular phrase “Go woke, go broke.”
All of that anger at Disney has led to the hashtag #BoycottDisney to trend on Twitter.
The Daily Wire media company founder Ben Shapiro believes that it is Disney’s job to protect children and by opposing the bill, they are not doing so. Shapiro tweeted:
Your goal as a company should be to preserve the innocence of children, not fight against it on behalf of a small, radical group of employees who need the validation of having their choices validated by kindergarteners
Disney’s stock has been seeing a downward trend recently — which has happened in the past before big rebounds. However, some think that Disney’s drop has to do with them losing a large number of conservative people who used to support them.
Twitter user @WonderWoman4USA tweeted that she believes certain things should not be taught to younger children, which is why she is boycotting.
In response to Disney’s stance on the Parental Rights in Education bill, Ben Shapiro has also announced that The Daily Wire will be spending more than $100 million in creating conservative children’s content for those who feel as if they do not want to support Disney. Disney, meanwhile, has remained committed to its LGBTQ+ Cast Members and continues to say that it will fight the bill for as long as possible. Disney has also said that it will form a task force to fight these types of bills from passing in other states as well.
As the Walt Disney Company and Parks find themselves surrounded by seemingly endless controversy, CEO Bob Chapek maintains the helm of the ship, either successfully making it through the treacherous waves of backlash or going down with the ship.
If you have visited the Disney Parks and Resorts in the last few years or been a part of the Disney community in general you will surely know the name, Bob Chapek. Chapek serves as the company’s current CEO, taking over Bob Iger’s multi-decade tenure in early 2020, perhaps the worst time to take over one o the largest corporations in the world.
The exchange of power between Iger and Chapek was swift and came as a bit of a surprise, especially since Bob Chapek ended his position with the company earlier than expected. Now, as reported by CNBC, the relationship between Chapek and Iger is strained after the two had a falling out.
Of course, some of this can be attributed to the ongoing COVID-19 pandemic and the difficulties it caused. Normal times would have most likely allowed Iger and Chapek to work more closely. Iger and Chapek seemed to be ready for the difficult challenge of dealing with a global pandemic together. Back in 2020 during the Walt Disney Company’s Annual Shareholder meeting, Iger said “I can’t think of a better person to succeed me in this role”. Chapek returned the same optimistic view of the future.
One month after these positive comments, then-New York Times columnist Ben Smith published a story after reaching Iger by email where Iger told Smith he would stick around to help run the company, saying “A crisis of this magnitude, and its impact on Disney would necessarily result in my actively helping Bob [Chapek] and the company contend with it, particularly since I ran the company for 15 years!”
Allegedly Chapek was furious when he saw the story and comments. He had not expressed a need or desire for extra help and had not asked for any. At this point, Iger had postponed his retirement as Disney CEO three times already and Chapek felt he was essentially doing it again.
Although a joint effort in running a company during a pandemic would certainly help, “the two executives barely spoke to each other” after this. Apparently, Chapek has a small circle of close confidants with whom he makes and discusses major decisions including longtime right-hand man Kareem Daniel, chief of staff Arthur Bochner, and, to some degree, Chief Financial Officer Christine McCarthy, whom Iger promoted to the role in 2015, according to people familiar with the situation.
Former CEO Bob Iger was not so lucky as to be included in this circle. Back in December, Iger threw a little “going away” type of party, inviting over 50 people to his Brentwood home in suburban Los Angeles. Iger spoke about and discussed his time at the company among other matters. Also in attendance was Chapek, but according to sources, there was little interaction between the two men during the event.
Guests, including veteran Disney executives and television talents such as broadcasters Robin Roberts, David Muir, and Al Michaels were in attendance with Iger and Chapek reportedly sitting at opposite tables. Chapek sat near several of his direct reports, including Daniel. Iger sat next to film director and mogul Steven Spielberg. While Iger spent about 10 minutes publicly praising former colleagues, he barely mentioned Chapek, said the people.
“It was extremely awkward,” said one of the guests, asking to remain anonymous. “The tension was palpable.” According to CNBC, both Iger and Chapek declined to comment on their relationship with each other.
Bob Iger had an accomplished time at the company and any replacement was surely going to have a difficult time replacing him. Iger was beloved by Hollywood and highly respected as a CEO, both by higher-ups and the Disney community in general. Leading the company during the acquisition of Pixar, Marvel and Lucasfilm also helped solidify Iger as the leader Disney needed at the time.
Chapek, meanwhile, has a harder exterior and at times, according to colleagues, struggles with emotional intelligence — which happens to be Iger’s strength.