How Bob Chapek was fired from Disney by a CFO who conspired behind his back

It was reported that returning Disney CEO Bob Iger had complained that his successor, Bob Chapek, was “incompetent” before plotting with the chief financial officer to fire him.

Although Iger, 71, finally stepped down in 2020 after 15 years of growing up in the House of Mouse, sources familiar with the transition told the Wall Street Journal he never let go of the reins.

Iger allegedly held meetings with CEOs without Tangle, 63, and often complained about his successor’s leadership and refusal to lean on him, saying the new CEO was doing a “terrible job.”

Among Iger’s confidants was CFO Christine McCarthy, who has criticized Chapek’s leadership as “destructive,” and placed a November 16 call asking the former CEO to take the reins again.

Two days later, Iger was offered the job by Disney’s board of directors and then fired Chapek, which was marred by falling stock prices and a battle with Florida lawmakers over its special status in the tax district.

The reveal of an insight into Chapek’s final days comes as Disney is warning employees that job cuts are imminent with its stock dropping more than 42 percent in the past year.

According to current and former Disney executives, Iger continued to serve as a “shadow executive” at the company after his retirement but took a job as CEO.

Iger allegedly continued to work out of his office at Disney headquarters in Burbank, California, and did business with senior executives without Chapek’s invitation.

Sources said the meetings were to let Chapek know, “They work for me, not for you.”

Chapek, on the other hand, wanted to find his footing in the company and often turned away from Iger’s advice.

When the pandemic hit, Iger recommended that the company hold off on staff reductions until Congress approved relief aid.

However, Chapek pushed for cuts to conserve cash, but the board sided with Iger, who maintained much of his power to help guide Disney through the pandemic.

Sources said that Chapek was “angry” and would privately complain to his deputies that he was “not fully in control”.

After Iger promoted his work during the pandemic during an interview with The New York Times, sources said any chances of Chapek personally turning to his mentor for advice “went out of the question.”

The two men also clashed over starting Disney’s streaming service, with Iger predicting the company would have 60 to 90 million users within the first five years.

And, noting the rise of streaming during the pandemic, Tangled raised the forecast in December 2020 to 260 million subscribers, with Egger saying it “wasn’t smart to set such an ambitious target.”

Although Disney enjoyed early success, the most recent quarterly report shows that the streaming service has since lost $1.5 billion.

Since Chapek took office, the company has lost an entire third of its value.

McCarthy was among the top executives who often chastised Clash’s failures, catching him off guard during a meeting in which she brought up Disney’s declining revenue, sources tell the Wall Street Journal.

They noted that Chapek was angry with McCarthy for not discussing numbers with him earlier while providing informational materials to the rest of the council.

Chapek allegedly held meetings without McCarthy and said she “lost focus” and became “uneasy”.

By the fall, MCCarthy criticized Chapek’s leadership in a text exchange with CNBC’s Jim Cramer, who echoed the barbs against the then-CEO on Mad Money.

The day after the episode aired, Disney stock plunged 13.2 percent, the largest one-day drop in the company’s history.

Iger’s sensational return as Disney CEO came as a shock to even some of the media conglomerate’s top executives — who only discovered the change in leadership while at Elton John’s Nov. 20 concert.

Chapek is expected to receive a $23 million exit package, and he will receive more if share prices rebound after falling more than 42 percent over the past year.

Since Chapek took over the company, it has been criticized as becoming too stoic as the House of Mouse mishandled its relations with Florida Governor Ron DeSantis over the bill, which bars teachers of students in third grade and below from discussing sexuality.

As a result, DeSantis decided to strip Disney World of its special tax privileges.

The company has also been criticized for becoming more sober-minded, with scenes of a lesbian kiss in the children’s movie Lightyear, and a transgender man buying tampons in the TV series Baymax – although it’s possible that these products were signed on during Iger’s tenure.

Disney is also facing pressure from park workers who have demanded pay increases as longtime employees say they are “underpaid” while the company enjoys $3.6 billion in profits on their work.

The Council of Services Unions (STCU), which represents 42,000 of Disney’s 70,000 workers, called on the company to raise employees’ wages to cover their higher costs of living.

While Disney gave employees a $2 increase to $15 an hour in 2021, the union said it was a far cry from the $18.19 now needed to make ends meet as workers protested outside the Magic Kingdom last week.

Earl Benson, who worked as a chef for 11 years, told the Guardian that the recent pay increase has not been evenly distributed, as he only makes 50 cents more than the new hire.

“We’re paid very poorly for the hours we work,” Benson said. “Many of us have the same story of not being able to afford the cost of living from the wages we receive.”

“A lot of the Disney workers barely make it through. You have workers with families who sleep in their car.

He criticized Disney for not raising their wages to meet the average standard of living in Orange County, Florida, which the MIT Living Wage Calculator puts at $18.19.

“It’s really sad, it’s demoralizing, because you’d think they’d realize how hard the cast members work,” said Benson. I hope they tell us they appreciate the magic we have to offer.

Each of us is part of the magic of Disney and we enjoy making magic. We just want to be compensated for making magic.

According to Local 737, one of six unions STCU represents, about 75 percent of its members have had to skip meals over the past year just to save money.

Another 35 percent needed a second job to get money, and a quarter of union members skipped buying prescription medication.

About 40 percent or more have experienced stress because of money, which has affected their relationships and health.

The union also found that 26 percent of its members had to move because their rents or mortgages were high, while 21 percent took roommates to help with costs.

About 39 percent of the members said they worried about becoming homeless.

In terms of negotiations, Disney said it is considering inviting employees for a salary of $20 an hour.

We made a strong, meaningful offer that far exceeds Florida minimum wage by at least $5 an hour, immediately takes starting wages for certain roles including bus drivers, housekeepers, and cooks at a minimum of $20 an hour with a path to $20. . For all other full-time roles that do not receive a tip during the term of the contract. The company said in a statement.