Did Disney Executives Unite to Fire Bob Chapek?

New information from the Walt Disney Company suggests that its Board of Directors banded together to fire Bob Chapek on Monday, November 21. Apparently, while they did not find him in breach of his contract, Company leaders such as CFO Christine McCarthy saw fit to “terminate” his role “without cause” and reinstate his predecessor, the now Disney CEO Bob Iger, immediately.

After over 15 years with the Walt Disney Company, CEO Bob Iger stepped down in 2021 and CEO Bob Chapek took up the reins. Chapek took a distinctly different approach toward Company practices, creating data-based divisions and a focus on streaming revenue, and the Board even voted unanimously to extend his tenure for another three years.

However, the Board of Directors’ opinion of Chapek seems to have shifted. Recently, after less than stellar results on the Company’s end-of-year Earnings Call, and lost revenue due to the Covid-19 pandemic and other natural disasters such as Hurricane Ian and Nicole, Disney announced cost-cutting measures at the Disney Parks and a hiring freeze to sustain their budgets.

What’s more, Chapek was quoted as saying that “adults only watched animated movies if they had children,” a sentiment in direct opposition to the viewpoint of founder Walt Disney. According to a report filed to the United States Securities and Exchange Commission, Disney shared the following:

“The Company exercised its right to terminate without cause the employment of Robert A. Chapek as Chief Executive Officer. Effective as of the termination, Mr. Chapek also resigned from the Board pursuant to the terms of his employment agreement. In connection with his termination, Mr. Chapek will receive the separation benefits payable in accordance with the terms of his previously disclosed employment agreement.”

While this must be a blow for Chapek, he walks away with $23 million in severance pay, while Iger will receive just $2.5 million for the duration of his term. Currently, Bob Iger will serve as CEO of the Walt Disney Company, and select a new successor, until December 31, 2024.

Most recently, Kareem Daniel exited the Company alongside Bob Chapek. DisneyTips update everyone as more details become available.