by Circle Squared Alternative Investments founder Jeff Sica reacts to Disney’s surprise CEO change and reveals which sectors Wall Street’s ‘big boys’ are buying on ‘Varney & Co.’
Disney agreed to pay former CEO Bob Iger $10 million a year to advise his successor before making a sensational return.
Iger retired after 15 years as a top executive at Disney, with Bob Chapek taking his place in February 2020, just as the COVID-19 pandemic began, but Iger made a surprise return to the post after prolonged periods of losses for the company.
The Financial Times reported this week that through the end of 2026, Iger received regular consultation rates “on such matters as his successor as chief executive officer may request from time to time.”
Chapek didn’t seem to capitalize on that advantage, and Iger reportedly told friends his frustration that Chapek hadn’t sought his advice during a turbulent time for the company, such as Disney’s response to Florida’s Education Parent Rights Bill.
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“Iger has never forgiven Chapek for how Chapek distanced himself and took control of the company,” a former executive told The Times. “In a way, Iger thought he would still be the coach. Chapek wasn’t ready.”
Disney Executive Chairman Bob Iger attends the Exclusive 100 Minute Sneak Peek of Peter Jackson’s The Beatles: Get Back at the El Capitan Theater on November 18, 2021 in Hollywood, California. (Charley Gallay/Getty Images for Disney/Getty Images)
Disney announced that consulting will be on pause while Iger fulfills his active duties as CEO, but that he will resume consulting when he leaves the company. Iger is currently on a two-year contract.
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Iger’s return comes with a major reorganization as he announced plans for significant “organizational and operational changes within the company” in the coming weeks.
Bob Chapek, Disney’s then Chief Executive Officer, speaks at the 2022 Disney Legends Awards during Disney’s D23 Expo in Anaheim, California September 9, 2022. (REUTERS/Mario Anzuoni / Reuters photos)
“It is my intention to restructure things in a way that honors and respects creativity as the heart and soul of who we are,” Iger wrote in a memo that caused concern across the company.
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He noted that “this is a time of tremendous change and challenge in our industry and our work will also focus on creating a more efficient and cost-effective structure.”
| ticker | security | Last | change | change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 98.87 | -0.01 | -0.01% |
| SONY | SONY GROUP CORP. | 82.89 | +0.69 | +0.84% |
| WBD | WARNER BROS. DISCOVERY INC. | 11.47 | +0.13 | +1.15% |
| CMCSA | COMCAST CORP. | 35.65 | +0.12 | +0.34% |
The announcement caused Disney stock to rebound, up 6.3% after falling 40% last year, Reuters reported.
Under Iger in his previous tenure as CEO Disney acquired Pixar, Marvel, Lucasfilm and 21st Century Fox. Iger also oversaw the launch of Disney+.
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Operating losses in the direct-to-consumer segment rose about 134% year over year to $1.47 billion in the fourth quarter of this year.
Eric Revell of FOX Business contributed to this report.
