Iger Retirement In Hindsight

[rteetz]

That didn’t last very long

Well it’s really not expected he’s heavily involved in the companies situation right now CEO or not. He’s the chairman of the board.

 

[jade1]

Good for him, would have left a negative legacy IMO. Certainly wasn't his fault.

 

[PJ Webb]

He should have “anticipated the optics”

 

[pahoben]

Well it’s really not expected he’s heavily involved in the companies situation right now CEO or not. He’s the chairman of the board.

I should know never to disagree in any way with rteetz about anything Disney. . The Disney PR organization even rolled out support after her posts.

The following in very small fonts-
(When you resign from a position it can also be said that you retired from a position and a retirement package doesn’t necessarily include provisions only existing on the date of actual separation but I understand now that he is still involved in the CEO role and not just BOD role. When just chairman and not chairman/ceo there is a distinction in usual responsibilities in public corporations. This from a Harvard Business School article-
“Most separations occur during the succession process, with the former CEO, founder, or other officer continuing to serve as chair on either a temporary or permanent basis. Of the 171 separations in our sample, 134 (78 percent) are associated with an orderly succession. This is true of both small and large companies. However, large companies are significantly more likely to separate the roles temporarily, whereas smaller companies are more likely to do so permanently.”

I have no idea what was included in Iger’s succession plan but likely it has been modified at this point and usually in large corporations Chapek would assume both roles after the hand holding period .)

 

[ChipnDale79]

Well this is interesting...

 

[rteetz]

I should know never to disagree in any way with rteetz about anything Disney. . The Disney PR organization even rolled out support after her posts.

The following in very small fonts-
(When you resign from a position it can also be said that you retired from a position and a retirement package doesn’t necessarily include provisions only existing on the date of actual separation but I understand now that he is still involved in the CEO role and not just BOD role. When just chairman and not chairman/ceo there is a distinction in usual responsibilities in public corporations. This from a Harvard Business School article-
“Most separations occur during the succession process, with the former CEO, founder, or other officer continuing to serve as chair on either a temporary or permanent basis. Of the 171 separations in our sample, 134 (78 percent) are associated with an orderly succession. This is true of both small and large companies. However, large companies are significantly more likely to separate the roles temporarily, whereas smaller companies are more likely to do so permanently.”

I have no idea what was included in Iger’s succession plan but likely it has been modified at this point and usually in large corporations Chapek would assume both roles after the hand holding period .)

If you’re going to throw shots at least get my gender correct.

To me retirement would've been leaving the company altogether. He didn’t do that. He really couldn’t until the end of 2021 because of stipulations of the Fox deal. I think Iger is very much worried about his legacy which is part of the reason he’s retaken responsibility now. When he resigned from the CEO role he said he was doing so in order to take a more creative role with the company. He was done with the day to day operations.

 

[ChipnDale79]

If you’re going to throw shots at least get my gender correct.

To me retirement would've been leaving the company altogether. He didn’t do that. He really couldn’t until the end of 2021 because of stipulations of the Fox deal. I think Iger is very much worried about his legacy which is part of the reason he’s retaken responsibility now. When he resigned from the CEO role he said he was doing so in order to take a more creative role with the company. He was done with the day to day operations.

what happens to Chapek?

 

[rteetz]

what happens to Chapek?

Per the Times article he still holds the CEO title. He is still involved. Iger also said the board would take this into consideration when evaluating his performance. No matter who you have in charge during this it’s going to be rough. There is no perfect avenue here but of course some are better than others. I think it’s smart for Iger to step back in and help guide the ship because he has the experience that Chapek lacks.

 

[rojen]

I wonder if his flirtation with a presidential run will hurt the company? Can't see getting a lot of federal help from this administration who takes things so personally. Iger going away for good might help with a bailout.

Otherwise I fear a bankruptcy and even worse corporate thinking by whoever wrests control.

 

[rteetz]

I wonder if his flirtation with a presidential run will hurt the company? Can't see getting a lot of federal help from this administration who takes things so personally. Iger going away for good might help with a bailout.

Otherwise I fear a bankruptcy and even worse corporate thinking by whoever wrests control.

I don’t think so. His flirt with that was pre 2016. He has no interest in that anymore according to him and his book. I also don’t see bankruptcy happening.

 

[CastAStone]

I wonder if his flirtation with a presidential run will hurt the company? Can't see getting a lot of federal help from this administration who takes things so personally. Iger going away for good might help with a bailout.

Otherwise I fear a bankruptcy and even worse corporate thinking by whoever wrests control.

There is literally zero chance of a bankruptcy. The article suggests they are losing $30 Million dollars a day; their last 10-K indicated they have about $80bn in equity they can issue debt against before they do bankrupt. That's 7.3 years.

 

[rojen]

There is literally zero chance of a bankruptcy. The article suggests they are losing $30 Million dollars a day; their last 10-K indicated they have about $80bn in equity they can issue debt against before they do bankrupt. That's 7.3 years.

Who has the ability to lend Disney up to $80b? Because borrowing against equity is going to cost a lot with the stock price already down and the stock price will go down further as you take on more debt. They'll have near zero cash flow once their movie pipeline dries up. Borrowing to pay interest to pay interest to pay interest adds up fast.

The first $10b will be easy to borrow. Servicing that load and asking for more is a stretch. Then you can't borrow to pay your creditors. Then you have $50b in theoretical equity and no ability to pay your loan.

 

[mom2rtk]

I'm quite curious about all of this. Iger knew the crap was about to hit the fan when he stepped down. Did Chapek screw things up already? Is Iger's ego so large that he couldn't not be part of the solution?

 

[rteetz]

I'm quite curious about all of this. Iger knew the crap was about to hit the fan when he stepped down. Did Chapek screw things up already? Is Iger's ego so large that he couldn't be part of the solution?

I don’t think Chapek screwed anything up. There wasn’t much to screw up in the span of 2-3 weeks. I wouldn’t be surprised if this had something to do with ego though.

 

[butterscotchcollins]

I don’t think Chapek screwed anything up. There wasn’t much to screw up in the span of 2-3 weeks. I wouldn’t be surprised if this had something to do with ego though.

Ego may be a factor but I think it's maybe more about not throwing Chapek to the wolves and trying to make him look good as his hand-selected successor by taking this hit on his behalf so he can throw some softballs "Bob C"'s way.

 

[OKW Lover]

what happens to Chapek?

I don’t think Chapek screwed anything up. There wasn’t much to screw up in the span of 2-3 weeks. I wouldn’t be surprised if this had something to do with ego though.

I wonder if some of this is a shrewd move on Chapek's part. Once its all over he could point to the parts that fail (you know there will be something) and put the blame on Iger?

 

[rteetz]

I wonder if some of this is a shrewd move on Chapek's part. Once its all over he could point to the parts that fail (you know there will be something) and put the blame on Iger?

Maybe, I think Iger was the one who said I will come in and help. Iger was sort of still Chapek's boss since Chapek reports to Iger and the board. Either way its an interesting situation.

 

[ChipnDale79]

I wonder if some of this is a shrewd move on Chapek's part. Once its all over he could point to the parts that fail (you know there will be something) and put the blame on Iger?

I dont see how Chapek takes the reigns again. You dont normally see that in the corporate world.

either A, he walks because he feels the board "didnt believe in him"
or B the board makes him go away quietly because they really didn't believe in him.

There are some big egos at stake here.

 

[Spaceguy55]

Maybe this has to do with credibility. If there are some tough decisions coming, Iger will be able to make changes and people will believe in him, Chapek is a well known penny pincher so his decisions will be looked at thru that lens.....

 

[CastAStone]

I dont see how Chapek takes the reigns again. You dont normally see that in the corporate world.

either A, he walks because he feels the board "didnt believe in him"
or B the board makes him go away quietly because they really didn't believe in him.

There are some big egos at stake here.

I think he retakes the reins because the board is gonna be stubborn about the decision they just made and because this article is fatal to Chapek's viability as a CEO elsewhere unless he retakes the reins at some point and steers the ship back to shore. I can easily imagine a scenario where Iger gives everything back the second it becomes clear how and when this situation will end so Chapek can go execute the plan and claim success.

But it's very weird, and not great!