As you may have heard, Bob Iger is BACK as the CEO of The Walt Disney Company following the exit of Bob Chapek.
©Alberto E. Rodriguez / Getty Images
That’s right, Iger has signed back on to lead the company for a two-year stint, in which time he’s been tasked to “set the strategic direction for renewed growth and to work closely with the Board in developing a successor to lead the Company at the completion of his term.” But, just how difficult will it be to find a successor for Iger? Here’s why it might be easier than you think.
Bob Iger’s tenure with The Walt Disney Company has been viewed as overwhelmingly positive by fans and analysts, some even referring to him as Disney’s “favorite son.” It seemed like an easy decision for the board to bring him back, even if only for a short period of time. But now Iger has the task of finding and developing his successor — something he has done once before with Bob Chapek, and that transition did not go as well as Iger had probably hoped.
©Reuters
The two-time CEO now has another chance to pick his replacement, and it will likely be no easy feat — or will it? History shows “boomerang” CEOs don’t always flourish the second time around, and Iger is facing some seriously steep uphill financial battles with Disney’s streaming division.
©Disney
According to The Wall Street Journal, since 2010, 22 CEOs at S&P 500 companies have left their positions only to “boomerang” and come back later. These executives are usually brought back to help get their former companies back to where they once were — and Iger is no different. But a lot has changed at Disney since Iger left, and now that there’s a potential recession on the horizon, Iger is going to have to deal with factors completely outside of his control.
Bob Iger ©New York Post
In fact, a 2020 study from MIT Sloan Review showed that companies that brought back former CEOs have “significantly lower” stock performance than companies who chose someone new. A similar study from executive search and leadership advisory firm Spencer Stuart found that “companies tend to underperform in the market when they bring back former leaders.”
©Google Stocks
This is most likely due to the fact that returning CEOs will often try to use the same management tactics or practices during their second run as they did in the first — but this doesn’t always work. Dr. Chris Bingham, professor of strategy and entrepreneurship at the University of North Carolina Chapel Hill, said boomerang CEOs like Iger “can drag organizations backward because their ideas might be outdated.”
Bob Iger ©Bloomberg
So far, we’ve seen Disney stock prices rise and fall since Iger’s rehiring was announced, but previously planned price increases still rolled out on both Disney+ and in Disney’s theme parks. There’s still a big hill in front of Iger, though, and what challenges he and the company will have to face over the next two years is unclear.
If Iger isn’t able to accomplish what he set out to do and Disney continues operating the way it has been lately, this could leave the door open to welcome someone new into the position with open arms. When Iger stepped down back in 2020, he left Bob Chapek with some pretty big shoes to fill and if Iger’s second round as CEO doesn’t go as well as his first, his successor wouldn’t have to worry about trying to follow the “savior” of The Walt Disney Company.
©Disney | Walt Disney Company Headquarters
And, should this new CEO be welcomed into the position and not met with ire — or at the very least, skepticism — it could mean he or she is able to get things done a bit more easily and have a few “wins” right off the bat. Public opinion can change the perception of whether or not someone is “doing a good job” or not, and that positive feedback could lead to positive change for the company.
Walt Disney Company Headquarters ©LA Times
As of now, reports show the “leading contender” for Iger’s replacement is current Chief Financial Officer Christine McCarthy. After being Disney’s treasurer for several years, McCarthy stepped up as CFO in 2015, and was “influential in helping to successfully engineer a string of key mergers, and adept at raising and husbanding cash during the depth of COVID.”
Disney General Entertainment Content chair Dana Walden has also been named as a possible successor. With multiple executive exits in recent years, the pool of contenders is getting smaller, but analysts have called McCarthy “a straight shooter” and “very capable” of being in the role.
©Disney
Whoever the next Disney CEO will be, they’ll have some pretty big shoes to fill. Whether they’re greeted with open arms or with skepticism remains to be seen, but we’ll keep an eye out for updates and let you know when we learn any news.
To read more about Bob Iger’s return to Disney, check out the articles below:
- Disney Announces “Organizational and Operating Changes” As a Result of Bob Iger’s Return
- “They Brought This on Themselves” — Governor DeSantis Responds to Disney CEO Bob Iger’s Comments on Florida Legal Battles
- Will Bob Iger Reverse Bob Chapek’s Decisions?
- Disney CEO Bob Iger Comments on Reedy Creek and & Don’t Say Gay Controversy
- CEO Bob Iger Comments on Disney Park Pass Reservation System
Stay tuned to DFB for more Disney news and updates.
Every Major Change Since Bob Iger Returned as Disney’s CEO
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The CEO of Disney now and in the future will not ever be able to restore the parks back to their glory days. Too much has changed to turn back now. As things go forward for good or bad that is the truth.
Go ahead replace Iger. Give hm 44 million and shove him out the door. Another CEO getting paid for doing nothing. Disney is good at raising prices and blowing, wasting money.
The concern I would have with McCarthy as CEO is that she seems to be primarily a finance person with little insight to the creative side of the company. Chepak was a similar person, who stumbled badly with both talent and park guests while focused very much on the dollars. Now Disney will always need solid financially oriented people, but the leadership and direction setting needs to come from the creative side; i.e. we need a Roy to support a Walt. I hope that Iger can find the right person this time.
Christine McCarthy us another bean counter. She doesn’t have the vision needed to be a leader. Don’t forget she fat shamed park guests by commenting that smaller food portions would help more eople fit in rides. And she backstabbing Chapek by going to the Board to fire him at the same time Chapek had just named her to his task force to improve corp results. Josh D’Amato is the best candidate. He’s young, vibrant, well-liked & enthusiastic about creativity leading.