News The Walt Disney Company Board of Directors Extends Robert A. Iger’s Contract as CEO Through 2026

[Sirwalterraleigh]

I also hear you from the Disneyland Resort lens, which if I'm running my own mental tabulation, they've botched a lot more than WDW in the last 7 years. Well, DCA really. I think most of the domestic parks are better than they have been in a long time. DCA has declined since 2015/6. I don't mind current powers that be doing more of the same with bigger budgets, but I'm very much off on my own island with that take. I do not love Rasulo's portfolio, however. I take that advisement as a negative parks consequence of this whole affair if any of them get into the boardroom. Films - I really dislike Perlmutter and don't want him near the company again.

Peltz I feel like is showing his true colours, but there is a very vague argument that he could have had some positive consequences, maybe vaguely outweighing the negatives when Chapek was in charge. Contingent on Rasulo and Perlmutter not being on the team at the time. It's not like he has lacked a single good idea, I just think Iger was more apt to fix the entire situation. The return of Iger squeezed out the need for Peltz. Anything remotely of value Peltz had to add has been done already. Anything remotely he has identified as a problem, beyond those that are solved, he has actually offered zero solutions on how to fix. I think he is just agitating to take credit for those things in motion, like DTC profitability. Any true ideas he has that aren't in the above categories of having been adopted or in motion - I think are bad and harm the company. The only vague role for him is helping advising succession, but his own plan for Trian succession is even more vague and unending than Iger's reign. If his own house isn't in order, how is he a good advisor?

I think Peltz was and is going to push Jay for CEO, truly help us all if that were the case.

The return of Iger “fixed” the problems…created by Iger round 1…

And here we are.

Can we at least acknowledge that most of the issue were put into motion prior to 2020? Because they were.

 

[Sirwalterraleigh]

I think I’d categorize my position as desperation, I grew up a Disney kid, it’s a company I’ve always loved for being the best, Disney was the high standard for guest service, Disney was the high standard for storytelling, Disney was the high standard for theme park immersion… at this point I’ll accept any change in leadership rather than continuing to watch the slow death of “Uncle Walt’s“ company.

Everyone is worried Peltz may get in and kill Disney, I’m worried nothing will change and the current team will continue to kill Disney, because that’s what they’ve been doing for almost a decade now.

I don’t think you…and by extension me…are “desperate”

We heading towards not caring. That’s like a 5 alarm warning siren.

If it doesn’t draw the longterm followers…they’re screwed.

 

[BrianLo]

The return of Iger “fixed” the problems…created by Iger round 1…

And here we are.

Can we at least acknowledge that most of the issue were put into motion prior to 2020? Because they were.

They were. But sometimes people can repair their own mistakes faster than external sources can.

Some, though not all, of the mistakes were related to Chapek though. Chapek, yes, being a mistake in and of itself of Iger's.

A lot of major changes have occurred though. Fairly numerous in light of Iger's longer term tenured pace for changes. Peltz has lost his teeth in the matter since he started this whole thing under Chapek the first time. This time it's more about ego and revenge. Ego and revenge are not in and of itself helpful solutions.

 

[Sirwalterraleigh]

They were. But sometimes people can repair their own mistakes faster than external sources can.

Some, though not all, of the mistakes were related to Chapek though. Chapek, yes, being a mistake in and of itself of Iger's.

A lot of major changes have occurred though. Fairly numerous in light of Iger's longer term tenured pace for changes. Peltz has lost his teeth in the matter since he started this whole thing under Chapek the first time. This time it's more about ego and revenge. Ego and revenge are not in and of itself helpful solutions.

Well…bobs has reorganized and slashed costs…again…

But as far as the core units:
Parks - nothing…the genie mess continues to sink and they seem “disinclined” to move
Films - sequelpalooza…they still have the core problems with their studios
Stream - jacking costs and reducing programming outlay…that should work

 

[BrianLo]

Well…bobs has reorganized and slashed costs…again…

But as far as the core units:
Parks - nothing…the genie mess continues to sink and they seem “disinclined” to move
Films - sequelpalooza…they still have the core problems with their studios
Stream - jacking costs and reducing programming outlay…that should work

Streaming - India/Reliance JV. I think this gets buried and isn't sexy, but a huge problem was India and the lack of any sense of breaking even in that country. Sub loss there most directly lost Chapek his job. Spinning off significantly helps D+ financial metrics.
Sports - You don't mention. But let's not forget for an entire decade Wall Street has bugged Bob about ESPN. He has finally made a plan. I don't know if that will work and I'll be honest I just don't really care about the Sports arm of Disney. Betraying that I don't love everything and anything Disney buys and shoves in my face. I'm not a true fan.
Parks... well ya. Really comes down to how much we believe the Capex. But it is a massive, massive change in tone for Bob. Other than his legacy builders, for the first time in 20 years people are talking about how great P&R is as a business growth unit.

I've got no excuse for films, other than Chapek's structure made things even worse. At least Bob bought a winner in James Cameron.

 

[lazyboy97o]

They were. But sometimes people can repair their own mistakes faster than external sources can.

This one time I was trying to fix my sink and I forgot to shut off the water. Instead of shutting it off and then calling a plumber, I decided to call my financial adviser to see what he thought about the sink. He’s reviewing my decision to hire a plumber and the water is still spraying everywhere.

 

[TalkingHead]

Hard to keep up, but the pro-Iger folks have complained for years that he doesn’t value commitment to theme, upkeep on attractions, non-IP expansions, additions instead of replacements, etc. Now they’re concerned a mixed bag of IP expansions might not be built? Make it make sense.

 

[Sirwalterraleigh]

This one time I was trying to fix my sink and I forgot to shut off the water. Instead of shutting it off and then calling a plumber, I decided to call my financial adviser to see what he thought about the sink. He’s reviewing my decision to hire a plumber and the water is still spraying everywhere.

…That explains why Star Wars land sucks…

 

[lazyboy97o]

Hard to keep up, but the pro-Iger folks have complained for years that he doesn’t value commitment to theme, upkeep on attractions, non-IP expansions, additions instead of replacements, etc. Now they’re concerned a mixed bag of IP expansions might not be built? Make it make sense.

Maybe try not oversimplifying and conflating?

 

[Vegas Disney Fan]

Hard to keep up, but the pro-Iger folks have complained for years that he doesn’t value commitment to theme, upkeep on attractions, non-IP expansions, additions instead of replacements, etc. Now they’re concerned a mixed bag of IP expansions might not be built? Make it make sense.

We’re Disney fans, we’re a fickle bunch. Prior to his return 2 years ago I’d have laid all the blame on Chapek and still proclaimed Iger the best Disney CEO since Walt, now I think he’s killing the company and the sooner a replacement is announced the better. . Amazing what a little time can do to perspective.

 

[BrianLo]

Hard to keep up, but the pro-Iger folks have complained for years that he doesn’t value commitment to theme, upkeep on attractions, non-IP expansions, additions instead of replacements, etc. Now they’re concerned a mixed bag of IP expansions might not be built? Make it make sense.

I think you are referencing Casper and Lazy - and neither have ever been pro-Iger. They are just severely anti-Peltz/Rasulo/Perlmutter.

I just want to separate myself that I don't complain about the IP and I think there is a sizeable group of us on that side of the coin as well. Just to not mix the two that there isn't complete uniformity here. Aka those of us who happily championed Pandora and Galaxy's Edge all along the way are the most worried about park spend disruption.

 

[TalkingHead]

Maybe try not oversimplifying and conflating?

Yeah what? You’ve gone on endlessly for years about how Iger’s Imagineers have done flawed work that doesn’t live up to Disney’s standards, and now you want them to be given more rope? Ok man.

 

[lazyboy97o]

Yeah what? You’ve gone on endlessly for years about how Iger’s Imagineers have done flawed work that doesn’t live up to Disney’s standards, and now you want them to be given more rope? Ok man.

Where have I said I want them to be given more rope? I am very hesitant about the influx of work coming. I’d probably be fine with a lot of the work being done not happening but that doesn’t mean I am going to lie about it happening. I’m not sitting here saying anything is good. And I’m definitely not going to tell myself that making things worse will somehow end up making things better.

Rasulo was worse than Chapek. Chapek at least saw some value in the parks, even if it was as something to be squeezed dry. He wasn’t part of trying to sell them off and/or ignoring them completely for timeshares in every major city. And yeah, his cheapness did help kill some lousy projects at Epcot that are suddenly lamented.

 

[Casper Gutman]

Yeah what? You’ve gone on endlessly for years about how Iger’s Imagineers have done flawed work that doesn’t live up to Disney’s standards, and now you want them to be given more rope? Ok man.

This isn’t hard to understand. Saying, “The recent additions to Disney World often have issues that reflect fundamental flaws in American corporate culture,” does not lead naturally to, “because of this they should empower men who embody these flaws to a much greater degree then current management and add additional, even more toxic, characteristics so that all additions stop, staffing is cut far more, and the company is eventually sold for scrap.”

I don’t want to burn Disney to the ground because the story on Guardians is badly written. That’s a mad position.

 

[Vegas Disney Fan]

Yeah what? You’ve gone on endlessly for years about how Iger’s Imagineers have done flawed work that doesn’t live up to Disney’s standards, and now you want them to be given more rope? Ok man.

I share your view but I still get why people who aren’t Iger fans are worried by Peltz, it’s like politics at this point, who’s the less bad candidate you hold your nose and vote for?

 

[brb1006]

Theming wise no they are better but where they are better is they understand parks need constant investment.

Efteling located in the Netherlands makes Hershey Park and Cedar Park look like a joke. It's the only non-Disney Theme Park that rivals Disney in terms of entertainment and guest treatment. This official wallpaper gives a good impression on the parks' dedication to attractions and guest experiences.

Even Efteling Hotel (the park's official hotel) has much better theming compared to Walt Disney World's newer hotels. Especially the guest rooms which contains interactive elements (such as Pardoes Suite).

 

[WoundedDreamer]

How is “banks wanting to get some amount of their cash back” not “return on investment”?

I didn't argue that point. I argued that a bank's incentives and tools at their disposal are different from a board of director's. If you don't know the difference between a board's involvement in managing a company, and a bank's incentives... That's on you. But I suspect you do.

It's easier to attack a straw man than actually confront what I said.

 

[lazyboy97o]

I didn't argue that point. I argued that a bank's incentives and tools at their disposal are different from a board of director's. If you don't know the difference between a board's involvement in managing a company, and a bank's incentives... That's on you. But I suspect you do.

It's easier to attack a straw man than actually confront what I said.

Explain to us how Peltz’s incentives are different. Don’t hide behind the general idea of a board of directors. Give us the specifics related to those you champion.

 

[WoundedDreamer]

I think this has been largely addressed already, but I'll just add that everything you're talking about involves an interest in the longterm viability of the business over short-term financial gain. This whole challenge is based on the latter goal, so why would Peltz be worried about how the parks business is looking in a decade's time (when he'll be 91, by the way) when the goal is to make as much money and cash out? It makes far more sense from his perspective to increase revenues and slash costs in the immediate future. After all, that money would be far better spent on dividends.

There's a few reasons. One is that they he could be ejected from the board in disgrace if he's not careful. While Trian's holdings are immense by normal people's standards, they're nothing in comparison to the entire pool of voting stock. That means shareholders have strong leverage. This is a major legacy item for Peltz. He wants to make this a success so he's seen in a different light. That part of his story I don't doubt. The man is getting old, and he wants this to be a defining part of his life story. A humiliating ejection a few years later would be a terrible humiliation.

There's also reason to believe that Trian is interested in this position for the long haul. Peltz has a son who is a managing partner in the firm. I wouldn't be shocked if his son is one of the individuals who leads Trian into the future.

Additionally, Peltz has to be reasonable to influence fellow board members. If other board members hear his goal is to burn the place down, that will not yield votes to go along with his proposals. He seems to be an intelligent guy, but there's ample reason to believe other members of the board of directors could see through blatant attempts at destroying the value of the firm's longterm assets.

Finally, taking good care of theme parks is just good business. Items like Pandora, the Disney California Adventure relaunch, new cruise ships, etc. are expensive. But they also boost results. Iger is looking for RoI just as much as Peltz. And he's preparing to make investments. Art and business are not inherently in conflict with each other. When either art or business become too dominate, the entire project suffers. This is true in Hollywood, theater, TV, and theme parks.

If Peltz has an aim to reduce the size of the company, he will be targeting three of Iger's most beloved properties. Those would be ESPN, Hulu, and Fox assets. I'm not sentimental about any of those businesses.

Other assets are a core part of The Walt Disney Company's flywheel, and wouldn't be ejected. Absolute worst-case scenario is that Peltz cancels every expansion, cuts back on maintenance, and raises prices. This combination would yield significant attendance declines within a few years as guests would look for other ways to spend their money. Disney would have to then correct and begin building again, spending again, and offering better deals.

In the meantime, Universal would be dunking on Disney posting great results as Disney's parks business chose stagnation and decline.

I don't find it credible.

 

[peter11435]

Yes I do, and somehow I still think he’d do a better job than the current team, I think they are that bad.

The current team has added significantly to the parks since Rasulo left. While maybe not as much or what we would like. Exponentially more than was done under Rasulo. So we already know he does a worse job than the current team