Rumor Hollywood insiders say there's growing tension at Disney as CEO Bob Chapek chafes at Bob Iger's 'long goodbye'

[Sirwalterraleigh]

It’s not what we like. Its what the Board likes, in terms of increasing profitability. I think we theme park enthusiasts have to look past our myopia and realize the company has gone ”all in” on being looked at as a tech company, and that the Board wants its stock to perform like Netflix or Amazon or Apple, and not like Carnival or Marriott or Six Flags.

For those reasons, I think the person after Bob C will come from an entertainment / streaming type of background.

And there in lies the insanity. Disney’s stock relies on “whim” and is a disposable product. It will never be the “necessity” that Apple has managed to paint an iPhone as…

It’s stock price is over pumped as is
of right now. The sky will never be the limit.

Which makes the tenure of a Bob even more volatile…as they assume they can convince Wall Street that it is something it is not. Which will lead - at some point - to rash decisions that kills what the core of the product is. We’re already seeing it in small doses.

 

[Lilofan]

Surprising that the article that started all this didn't delve into Chapek's anger at the Board of Directors. They had to have approved of 'the mentoring' deal.

Angry may take a back seat when he saw his very generous compensation package in the last two years. One-year he earned a $2.5M salary, $14M cash bonus and a $12M stock option reward. Earning $28M in one year was not too shabby.

 

[Sirwalterraleigh]

Angry may take a back seat when he saw his very generous compensation package in the last two years. One-year he earned a $2.5M salary, $14M cash bonus and a $12M stock option reward. Earning $28M in one year was not too shabby.

Bob is on a trajectory to be paid $200-$300 in 5 years.

He’s 60 years old.

I think a mistake we make as we “analyze” him is that we do it through the lens of what we know…which is Eisner and Iger.

It’s very possible he’s just pumping the place for max cash and then is out. Why can’t it be that simple?

Occam’s Razor

 

[Lilofan]

Bob is on a trajectory to be paid $200-$300 in 5 years.

He’s 60 years old.

I think a mistake we make as we “analyze” him is that we do it through the lens of what we know…which is Eisner and Iger.

It’s very possible he’s just pumping the place for max cash and then is out. Why can’t it be that simple?

Occam’s Razor

His earnings will help pay for his recent purchase of a $12M, 6 bedroom, 10 acre home in a gated community in Westlake Village, CA.

 

[Sirwalterraleigh]

His earnings will help pay for his recent purchase of a $12M, 6 bedroom, 10 acre home in a gated community in Westlake Village, CA.

That was a mistake we’ve come to expect from him.

Shopping for an “estate” at the same time they laid most of their employees off. That should have been done discretely or not at all. And it was on the front of the LA Times.
Typical.

 

[Lilofan]

That was a mistake we’ve come to expect from him.

Shopping for an “estate” at the same time they laid most of their employees off. That should have been done discretely or not at all. And it was on the front of the LA Times.
Typical.

He should have stayed in his "starter" home of $5M in the same gated community he bought years ago. How much home does one really need ?

 

[Goofyernmost]

Angry may take a back seat when he saw his very generous compensation package in the last two years. One-year he earned a $2.5M salary, $14M cash bonus and a $12M stock option reward. Earning $28M in one year was not too shabby.

If anyone can offer me that package you are free to hate me with intensity for however long it takes to make you happy.

 

[Mr Mindcrime]

Disney may have lowered standards but so have the guests.

Bingo!

 

[Lilofan]

If anyone can offer me that package you are free to hate me with intensity for however long it takes to make you happy.

I think when investors are risking their money and seeing the rewards, they could care less what the top dog earnings would be.

 

[Goofyernmost]

I think when investors are risking their money and seeing the rewards, they could care less what the top dog earnings would be.

For Sure! If they weren't paying deadwood that much though, their rewards might be even bigger.

 

[Goofyernmost]

Walt once said " We don't make movies to make money, we make money to make more movies." In reality, that mindset would never fly in the corporate world including satisfying the company shareholders and Wall Street with earnings.

TWDC survived almost completely for at least half a decade after his death by riding on his coattails. However, if he hadn't passed when he did I also believe that TWDC would have completely gone bankrupt if he had been able to build the EPCOT that he wanted.

 

[Goofyernmost]

My point still stands. Lack of passion and excitement on the part of a CEO for the specific company that CEO is running is a detriment.

Iger showed zero passion and excitement for the parks and they survived. At least the areas that this discussion representation considers the most important (the parks) and yet they not only survived they prospered and grew in popularity.

 

[Sirwalterraleigh]

Iger showed zero passion and excitement for the parks and they survived. At least the areas that this discussion representation considers the most important (the parks) and yet they not only survived they prospered and grew in popularity.

Correct…but the problem with physical things like parks and cruise ships is they require constant refresh for relevancy…

So it’s a very quick turn/drop if they become “not the place to go”

Disney has operated for 15 years…when you look at average capex/investment as if the label is really the only thing that matters. They get a lot of rope because of that…but not limitless.

We could be 3 years away from a competitor offering 3 parks with more sexy draws than Disney’s 4. And a nice collection of high quality hotels that have advantages over Disney hotels.

That will continue to erode.

Anybody have any indication Slaphead could handle addressing that?

That’s right…zero

 

[castlecake2.0]

If people like him because of what he does in Parks, shouldn't he stay in Parks?

People still can’t comprehend he’s not the parks saviour they think he is.

 

[monothingie]

Correct…but the problem with physical things like parks and cruise ships is they require constant refresh for relevancy…

So it’s a very quick turn/drop if they become “not the place to go”

Disney has operated for 15 years…when you look at average capex/investment as if the label is really the only thing that matters. They get a lot of rope because of that…but not limitless.

We could be 3 years away from a competitor offering 3 parks with more sexy draws than Disney’s 4. And a nice collection of high quality hotels that have advantages over Disney hotels.

That will continue to erode.

Anybody have any indication Slaphead could handle addressing that?

That’s right…zero

I think you're forgetting two important little words.

Unprecedented DEMAND.

There's no possible way the money making machine that is Disney Parks can ever fail. I mean the sheer amount of arrogance alone embodied by Disney execs will protect them from anything!

 

[Lilofan]

For Sure! If they weren't paying deadwood that much though, their rewards might be even bigger.

Yep, it is that Board of Directors group that help draw up and make the execs salary and bonus pay plan/ work contract Board probably sets up the execs golden parachute too.

 

[Lilofan]

People still can’t comprehend he’s not the parks saviour they think he is.

One thing that obviously affected Josh D is when he got very emotional when he met with CA cast during the recent layoffs. If he aspires to move up to CEO, more difficult decisions will be made more than just laying off cast, but approving layoffs is a very tough gut wrenching call that affect peoples lives.

 

[castlecake2.0]

He’s been sold…at least internally…as a “savior” to parks. I had a lengthy discussion late one night at Victoria falls in DAKL last year and I almost made a couple of the CMs cry (I have that effect…unfortunately unintended) about “Josh”…
And at the end of that day - they admitted he hadn’t done anything…just a figurehead head that had really kinda gone along with them being covid pawns.

The record is what it is…he’s just a face that’s a little better at internal PR/not as easily hateable as Bob is. Nothing more.

I’ve had this convo a few times anytime someone says “omgeeee I LOVE Josh, he’s just what we need” my response is always “ok what has he done?” You can almost see the instant they snap out of his trance. Josh does nothing other than take selfies with fanbois. I remember Dan Cockerel help me work a popcorn cart one day because we were short staffed, think we’d ever see pretty boy risk getting some butter on his rolled up blazer sleeves?

 

[Lilofan]

I’ve had this convo a few times anytime someone says “omgeeee I LOVE Josh, he’s just what we need” my response is always “ok what has he done?” You can almost see the instant they snap out of his trance. Josh does nothing other than take selfies with fanbois. I remember Dan Cockerel help me work a popcorn cart one day because we were short staffed, think we’d ever see pretty boy risk getting some butter on his rolled up blazer sleeves?

Dan Cockerell if he didn't retire from WDW at an early age and move into private consulting would have moved up the food chain. Perhaps for some the grass is greener on the other side.

 

[Goofyernmost]

Correct…but the problem with physical things like parks and cruise ships is they require constant refresh for relevancy…

So it’s a very quick turn/drop if they become “not the place to go”

Disney has operated for 15 years…when you look at average capex/investment as if the label is really the only thing that matters. They get a lot of rope because of that…but not limitless.

We could be 3 years away from a competitor offering 3 parks with more sexy draws than Disney’s 4. And a nice collection of high quality hotels that have advantages over Disney hotels.

That will continue to erode.

Anybody have any indication Slaphead could handle addressing that?

That’s right…zero

My feeling is that Iger waited until he could not wait any longer before adding new attractions over the last few years. Star Wars, Toy Story, Pandora and the very slow build of Guardians and Tron is partially what is drawing crowds now and the near future, plus the added bonus for them, the easing of Covid dangers. That part won't last forever though. People that are there right now will take at least two years to recoup financially (other then the filthy rich) and also because of Genie+ they probably were not able to see the biggies in one trip. Some will wait until the novelty dies out and then go back to see them. Some will go back sooner and focus on the new things they were unable to get to on this trip.