In a stunning move that marks the end of an era for one of the entertainment industry's great corporate success stories, Bob Iger on Tuesday stepped down as chief executive of Walt Disney Co. after 15 years in the job.
Bob Chapek, a 27-year Disney veteran who most recently led the company's massive important parks and consumer products business, was named Iger's successor, effective immedately.
Iger has assumed the role of executive chairman, the company said. In that role, he will direct the Burbank entertainment giant's creative endeavors and help guide the company's board through the leadership transition until the end of his contract on Dec. 31, 2021, Disney said in a news release.
Disney's CEO succession plan has been the subject of speculation for years as Iger delayed plans to leave the company. Other executives who were rumored as potential successors included Fox TV executive Peter Rice and Disney direct-to-consumer chairman Kevin Mayer, who recently oversaw the successful launch of streaming service Disney+.
Nonetheless, the timing of the announcement came as a surprise in the industry because Iger still has 20 months left on his contract and he has relished his role as one of America's most successful CEOs. Iger last year published a book detailing his rise through the entertainment industry and his time building Disney through key acquisitions, including Pixar, Marvel and, most recently, 21st Century Fox.
In a conference call with analysts, Iger explained the sudden timing by saying he wanted to wanted to allow Chapek time to get a handle on all aspects of the company before he steps away for good. Just in the last 12 months, Disney has become an even bigger behemoth with the $71.3-billion purchase of the Fox assets, as well as the high-profile debut of Disney+, which is Disney's all-in bet on subscription video service.
He also wanted to free himself up to focus on creative aspects of the business, he said. "I could not do that if I were running the company on a day-to-day business," Iger said.
By naming Chapek to the CEO role immediately, Disney's board avoids a repeat of what happened four years ago when Iger's apparent successor, Thomas Staggs, was ousted after serving as chief operating officer.
But some company insiders and industry analysts were taken aback by the news.
"Tom Staggs left in 2016. Why is the CEO changing today?" asked Laura Martin, a media industry analyst at Needham & Co. "I don't think they explained it well."
Chapek has overseen a major expansion of Disney's parks business, including the recent addition of the two ambitious Star Wars: Galaxy's Edge attractions at Disney's parks in Anaheim and Orlando.
"With the successful launch of Disney's direct-to-consumer businesses and the integration of 21st Century Fox well underway, I believe this is the optimal time to transition to a new CEO," Iger said in a statement. "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."
In the call with investors, Iger said: "We feel this change gives us the ability to manage the company much more effectively."
As the Burbank company's new CEO, Chapek will directly oversee all of the company's business segments and corporate functions. Chapek will report to Iger and the board of directors and will be appointed to the board at a later date.
Chapek has served as chairman of Disney Parks, Experiences and Products since 2018. Before that he was chairman of Walt Disney Parks and Resorts since 2015. As chairman of Disney Parks, Experiences and Products, Chapek oversaw the company's largest business segment, with operations around the globe and more than 170,000 employees.
From 2011 to 2015, Chapek was president of the former Disney Consumer Products segment. Before that, he was president of distribution for Walt Disney Studios.
