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Squawk on the Street

CNBC SPECIAL: Disney's Wildest Ride Part 1

Squawk on the Street

CNBC

Investing, Business, News

4.1567 Ratings

🗓️ 20 November 2023

⏱️ 44 minutes

🧾️ Download transcript

Summary

CNBC’s Alex Sherman reports on the inside story of a CEO succession plan gone awry at Disney — a cautionary tale of how good intentions clashed with ego and hubris at the highest levels of corporate America. Sherman spoke with more than two dozen people who worked closely with Disney’s last two CEOs, Bob Iger and Bob Chapek, between 2020 and 2022. His report features many never-before reported details about Chapek’s tenure, how and why he was fired, and Iger’s plan to revive Disney now that he’s CEO once again. To read the full article go to https://cnb.cx/3Pr3kEd Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

Transcript

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0:00.0

What does a private bathroom, Ugy-Buggy Bash, and a hippopotamus have to do with the behind-the-scenes chaos between Bob Iger and Bob Chapec at Disney?

0:12.6

I'm CNBC media reporter Alex Sherman. I spent many months reporting the inside drama of a CEO succession plan gone awry. A cautionary tale

0:24.1

about how good intentions collided with ego and hubris at the highest levels of corporate America.

0:32.0

Welcome to Disney's wildest ride.

0:38.7

Part one. After pushing back his retirement four times, Bob Eiger finally made the leap.

0:45.9

On February 25, 2020, he announced he would step down as Disney's CEO.

0:52.0

His handpick successor, Bob Chapec, then Disney's Parks Chairman, would take over

0:58.0

the day-to-day job of running the company effective immediately. As part of the changing of the guard,

1:04.0

the Disney Board suggested the new CEO should take over Iger's expansive office at Disney

1:10.8

headquarters in Burbank, California.

1:13.3

There was just one problem. Iger had no interest in moving out. He wasn't truly leaving Disney

1:19.3

anyway. His succession plan allowed him to stay on as executive chairman for 22 more months.

1:25.6

Chepec would report to him and the board.

1:28.4

Iger would also, quote, direct the company's creative endeavors, nebulous phrasing suggesting

1:34.6

he would retain control of movie and TV content and operations.

1:39.8

There was a practical reason Iger didn't want to move out of his office.

1:44.0

It had a private shower,

1:45.9

built for former CEO Michael Eisner, and a vanity for shaving. Iger, now 72, consistently woke up

1:54.0

around 4.15 a.m. to work out and then shower. On evenings when Iger was heading out for a Disney

1:59.7

premiere, award show, or benefit, he would often take a second shower, this time in the office.

2:06.8

Iger told Chepec that he lived for those, quote, two shower days, according to people familiar with the conversation.

2:15.0

Iger chose Cheapek, now 64, as his successor because of Chaepec's integrity

...

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