The Walt Disney Company has seen a number of changes in quick succession in the past few weeks, from appointing Bob Chapek as new CEO to facing the crippling economic effects of the ongoing Coronavirus (COVID-19) pandemic. Throughout the current crisis, however, only one voice from the upper echelons of the company has spoken out, and that’s former CEO Bob Iger. A recent post by the New York Times delves deeper into the current circumstances surrounding leadership at Disney, from Bob Chapek’s deafening silence to the potential of a downsizing and restructuring within the company.
In the New York Times piece by Ben Smith, he covers how Bob Iger, in an attempt to transition into retirement, has been faced with reasserting control and reimagining Disney in a time of crisis. Essentially, he’s quietly taken back his responsibilities while Chapek is still CEO:
“And now, Mr. Iger has effectively returned to running the company. After a few weeks of letting Mr. Chapek take charge, Mr. Iger smoothly reasserted control, BlueJeans video call by BlueJeans video call. (Disney does not use Zoom for its meetings for security reasons.)
The new, nominal chief executive is referred to, almost kindergarten style, as “Bob C,” while Mr. Iger is still just “Bob.” And his title is “executive chairman” — emphasis on the first word.
Mr. Iger is now intensely focused on remaking a company that will emerge, he believes, deeply changed by the crisis. The sketch he has drawn for associates offers a glimpse at the post-pandemic future: It’s a Disney with fewer employees, leading the new and uncertain business of how to gather people safely for entertainment.”
With the pandemic wreaking havoc on the economy and still no opening date in sight for many Disney Parks, Iger has commented on new health and safety screening measures for guests at the parks. The Times piece goes on to infer that the company will be downsizing following the pandemic to streamline its operations and be better prepared to weather a similar situation down the road:
“Mr. Iger, meanwhile, is trying to figure out what the company will look like after the crisis. One central challenge is to establish best practices for the company and the industry on how to bring people back to the parks and rides while avoiding the virus’s spread — using measures like taking visitors’ temperatures.
Mr. Iger also sees this as a moment, he has told associates, to look across the business and permanently change how it operates. He’s told them that he anticipates ending expensive old-school television practices like advertising upfronts and producing pilots for programs that may never air. Disney is also likely to reopen with less office space. He’s also told two people that he anticipated the company having fewer employees. (Mr. Iger said in an email on Sunday evening that he had “no recollection of ever having said” that he expected a smaller work force. “Regardless, any decision about staff reductions will be made by my successor and not me,” he added.)”
The full piece goes into far greater detail and can be read in full here.
Disney Parks have been closed indefinitely for weeks now due to the Coronavirus (COVID-19) pandemic. While right now, the biggest question might be when the parks will reopen, there’s the inevitable follow-up question: What’s it going to be like when the parks do reopen? With social distancing guidelines in place and likely to be extended, plus face masks quickly becoming the new norm, one has to wonder what a post-pandemic park will look like. In a recent interview with Barron’s, former CEO Bob Iger shed light on what the future of Disney Parks might be like upon reopening.
In his interview with Barron’s, Iger prided himself in the fact that once this all ends, the parks will be a place “for the public to enjoy and escape to––maybe in ways they will appreciate it more than they ever have.” However, knowing the new health and safety regulations in place, there may well be some changes. Iger spoke on the status of the parks after they reopen post-pandemic:
“One of the things that we’re discussing already is that in order to return to some semblance of normal, people will have to feel comfortable that they’re safe. Some of that could come in the form ultimately of a vaccine, but in the absence of that it could come from basically, more scrutiny, more restrictions. Just as we now do bag checks for everybody that goes into our parks, it could be that at some point we add a component of that that takes people’s temperatures, as a for-instance.
We’re studying very carefully what China has been trying to do in terms of their return to normalcy. And one of the things that’s obvious is they’ve conscripted a large segment of their population to monitor others in terms of their health. You can’t get on a bus or a subway or a train or enter a high-rise building there—and I’m sure this will be the case when their schools reopen—without having your temperature taken.
So we’ve asked ourselves the question, let’s prepare for a world where our customers demand that we scrutinize everybody. Even if it creates a little bit of hardship, like it takes a little bit longer for people to get in. Just as the case after 9/11 where people ultimately lived with the notion that in order for them to enter a building, if you’re in an office building you have to show a picture ID or get your picture taken and be screened. Or in order to enter a park you have to put your bags out there to be checked and you go through some kind of metal detector. Or certainly what’s going on in airports with the TSA.”
Many park guests may remember heightened safety restrictions throughout the parks after 9/11. Currently, guests at Shanghai Disney Resort are required to undergo temperature screening procedures upon their arrival. Them must also present their Health QR Code when entering dining venues, and are required to wear a mask during their entire visit. Guests are also reminded to maintain social distancing at all times while in stores, queues, and restaurants.
Iger also stressed the notion of ensuring that guests feel safe, and rebooting the company as efficiently as possible upon reopening:
“I don’t think we’re ever going to see a return to business as usual in the sense that, I can’t speak for all companies, but Disney will take this opportunity to look for ways to run our businesses more efficiently when we come back. So what we’re doing is thinking, OK, as things start to return, one, what must we address in terms of making people feel safe, but secondly, what must we address in terms of running the company more efficiently, given what we believe business conditions will dictate.”
How this will all be implemented in a place where guests have long been conditioned to “fill in all of the available space” is unknown, but if it means adapting to a new form of existence within the parks, we’re sure many guests will be quick to learn just to get back into their happy place.
Iger also commented on other pending topics, such as the current state of films already in production. While they’re opting to simply “wait for slots” for some of their bigger films, “there may be a few more” films that end up getting released on Disney+, as we’ve already seen with Onward, and soon enough, Artemis Fowl. You can read the full interview here.
The Walt Disney Company has named Bob Chapek its seventh chief executive officer, effective immediately.
Current chief, Bob Iger will assume the role of Executive Chairman and direct the company’s creative endeavors, while leading the Board and providing the full benefit of his experience, leadership, and guidance to ensure a smooth and successful transition through the end of his contract on December 31, 2021.
Chapek has been chairman of the Parks, Experience and Products unit up until this point. A new head of Disney Parks, Experiences and Products will be named at a future time.
“With the successful launch of Disney’s direct-to-consumer businesses and the integration of Twenty-First Century Fox well underway, I believe this is the optimal time to transition to a new CEO,” Iger says.
For more information, here is the official Disney press release for the announcement:
The Walt Disney Company (NYSE: DIS) Board of Directors announced today that Bob Chapek has been named Chief Executive Officer, The Walt Disney Company, effective immediately. Mr. Chapek most recently served as Chairman of Disney Parks, Experiences and Products.
“With the successful launch of Disney’s direct-to-consumer businesses and the integration of Twenty-First Century Fox well underway, I believe this is the optimal time to transition to a new CEO,” Mr. Iger said. “I have the utmost confidence in Bob and look forward to working closely with him over the next 22 months as he assumes this new role and delves deeper into Disney’s multifaceted global businesses and operations, while I continue to focus on the Company’s creative endeavors.”
Mr. Iger added: “Bob will be the seventh CEO in Disney’s nearly 100-year history, and he has proven himself exceptionally qualified to lead the Company into its next century. Throughout his career, Bob has led with integrity and conviction, always respecting Disney’s rich legacy while at the same time taking smart, innovative risks for the future. His success over the past 27 years reflects his visionary leadership and the strong business growth and stellar results he has consistently achieved in his roles at Parks, Consumer Products and the Studio. Under Bob’s leadership as CEO, our portfolio of great businesses and our amazing and talented people will continue to serve the Company and its shareholders well for years to come.”
“I am incredibly honored and humbled to assume the role of CEO of what I truly believe is the greatest company in the world, and to lead our exceptionally talented and dedicated cast members and employees,” Mr. Chapek said. “Bob Iger has built Disney into the most admired and successful media and entertainment company, and I have been lucky to enjoy a front-row seat as a member of his leadership team. I share his commitment to creative excellence, technological innovation and international expansion, and I will continue to embrace these same strategic pillars going forward. Everything we have achieved thus far serves as a solid foundation for further creative storytelling, bold innovation and thoughtful risk-taking.”
Susan Arnold, independent Lead Director of the Disney Board, said, “The Board has been actively engaged in succession planning for the past several years, and after consideration of internal and external candidates, we unanimously elected Bob Chapek as the next CEO of The Walt Disney Company. Mr. Chapek has shown outstanding leadership and a proven ability to deliver strong results across a wide array of businesses, and his tremendous understanding of the breadth and depth of the Company and appreciation for the special connection between Disney and its consumers makes him the perfect choice as the next CEO.
“Mr. Chapek will also benefit from the guidance of one of the world’s most esteemed and successful business leaders, Bob Iger,” Ms. Arnold continued. “Over the past 15-plus years as CEO, Mr. Iger has transformed The Walt Disney Company, building on the Company’s history of great storytelling with the acquisitions of Pixar, Marvel, Lucasfilm and Twenty-First Century Fox and increasing the Company’s market capitalization fivefold. Disney has reached unparalleled financial and creative heights thanks to Mr. Iger’s strong leadership and clear strategic vision. We believe Mr. Chapek’s leadership and commitment to this strategy will ensure that the Company continues to create significant value for our shareholders in the years ahead.”
In Mr. Chapek’s new role as CEO, he will directly oversee all of the Company’s business segments and corporate functions. Mr. Chapek will report to the Executive Chairman, Mr. Iger, and the Board of Directors. He will be appointed to the Board at a later date. A new head of Disney Parks, Experiences and Products will be named at a future time.
Mr. Chapek served as Chairman of Disney Parks, Experiences and Products since the segment’s creation in 2018, and prior to that was Chairman of Walt Disney Parks and Resorts since 2015.
As Chairman of Disney Parks, Experiences and Products, Mr. Chapek oversaw the Company’s largest business segment, with operations around the globe and more than 170,000 employees worldwide. The segment includes Disney’s iconic travel and leisure businesses, encompassing six resort destinations in the United States, Europe and Asia, a top-rated cruise line, a popular vacation ownership program, and an award-winning guided family adventure business. Disney’s global consumer products operations include the world’s leading licensing business across toys, apparel, home goods, digital games and apps, the world’s largest children’s print publisher, Disney store locations around the world, and the shopDisney e-commerce platform.
During his tenure at the Parks segment, Mr. Chapek oversaw the opening of Disney’s first theme park and resort in mainland China, Shanghai Disney Resort; the addition of numerous guest offerings across Disney’s six resort destinations in the U.S., Europe and Asia, including the creation of the new Star Wars: Galaxy’s Edge lands at Disneyland and Walt Disney World and the addition of Marvel-inspired attractions around the globe; and the expansion of Disney Cruise Line with the announced construction of three new ships.
From 2011 to 2015, Mr. Chapek was President of the former Disney Consumer Products segment, where he drove the technology-led transformation of the Company’s consumer products, retail and publishing operations. Prior to that, he served as President of Distribution for The Walt Disney Studios and was responsible for overseeing the Studios’ overall content distribution strategy across multiple platforms including theatrical exhibition, home entertainment, pay TV, digital entertainment and new media. He also served as President of Walt Disney Studios Home Entertainment, where he spearheaded the successful “vault strategy” for the Company’s iconic films and transformed the primary format of home entertainment from DVD to Blu-ray.
Before joining Disney in 1993, Mr. Chapek worked in brand management at H.J. Heinz Company and in advertising at J. Walter Thompson.
Mr. Chapek earned a B.S. in Microbiology at Indiana University Bloomington and an MBA from Michigan State University.
Many have seen on the news that Disney sent a $250 bill to a California school PTA because they offered a screening of “The Lion King” during a fundraiser. In fact, many have expressed outrage at this story. Bob Iger has nw come out and has apologized for the Walt Disney Company’s response.
The event was a parent’s night out PTA fundraiser organized by the Dad’s Club. A $15 donation was suggested in order to help raise funds for the PTA.
However, what the group did not take into consideration was the licensing law, which required the group to acquire a $250 single-use permit to show the copyrighted movie.
That being said, it is also at the studio’s discretion whether or not to enforce the policy. Disney went through with enforcement and sent out a bill to the PTA for the licensing fee.
PTA president David Rose reported to KPIX, “The event made $800, so if we have to fork over a third of it to Disney, so be it […] You know, lesson learned.”
Bob Iger himself took to Twitter to announce, “Our company @WaltDisneyCo apologizes to the Emerson Elementary School PTA and I will personally donate to their fundraising initiative.”
Whether done because of the deserved backlash or not, this is the right decision from Iger and the company.
2019 has been an exciting year for The Walt Disney Company! With so many new additions within Disney Parks around the globe, and even the addition of Disney+ now streaming in our homes daily, it has been an epic year for Disney to say the least.
Instrumental in making 2019 an outstanding year is of course the Disney CEO, Bob Iger. It’s no secret that Bob Iger is one of the most paramount businesspersons in the world! TIME Magazine recognizes Bob’s achievements and announced he is TIME’s 2019 Businessperson of the Year!
