Disney CEO Bob Iger said he was not anticipating being asked back to lead the entertainment giant after he retired in 2021. However, he says the changes made by his successor (and now predecessor) “created a huge divide” that needed to be corrected.
In an interview with CNBC’s David Faber, Iger said he was called by Susan Arnold, chairwoman of The Walt Disney Company, on Nov. 18 about returning. The announcement was made public two days later.
“She made it very clear it was a time of need … and I had a sense of obligation,” Iger said.
Iger handed the CEO title to Bob Chapek in February 2020. The onset of the pandemic was a tremendous disruption, shutting down much of the company’s revenue streams, and many of Chapek’s decisions were unpopular with both consumer and board members, which ultimately led to Iger’s return.
“The structure of the company had been changed by Bob,” Iger said. “He had a reason he wanted to do that, but it created a huge divide between the creative side of the company, the content engine, movies and television, and the monetization/distribution side of the company. And, while I think he had certain valid reasons he wanted to do that at the time, it was very apparent to me, both when I was out and when I came back, that that was a mistake.”
Iger declined to address whether he regretted moving Chapek into the CEO role, only saying “this is a big complex company and a hard company to run, even in good times. We thought we made the right decision when we chose Bob in 2020. The board recently decided he was not the right person for the job.”
While some have been skeptical about whether Iger will stay for just two years in his current run as CEO, he says his current goal is “to set the company on the right course for years beyond [his] tenure”.
“My plan is to stay here for two years,” he said. “That’s what my contract says and that’s was the agreement I made with the board. That would be my preference as well. … There are other things in life I’d like to do. I’m confident the board will be able to find an able successor.”
