“About Three Years of Hell” — The Harsh Reality Behind Bob Chapek’s Time as CEO of Disney

Disney World is the Most Magical Place on Earth and Disneyland is the Happiest Place on Earth, so being Disney’s CEO must be the Most Magical and Happiest Job on Earth right? Well…not necessarily.

Disney has faced some executive turmoil over the past few years, particularly with Bob Iger suddenly stepping down as CEO in 2020 (but staying on as Executive Chairman until 2021), and Bob Chapek quickly taking the CEO position only to be removed in 2022 with Iger quickly returning to Disney. So what really happened while Chapek was CEO and what was his tenure like? We’ve got some answers.

CNBC recently released an article detailing some of the behind-the-scenes stories surrounding the transition from Iger to Chapek and back to Iger. It is based on conversations with more than 25 people who worked with Iger and Chapek at Disney between 2020 and 2022.

The article covers everything from Iger’s going away party where he did not thank Chapek to Chapek being jokingly described by a colleague as “a tuna salad sandwich who sits in front of spreadsheets.”

For now, let’s focus on Chapek’s time as CEO and what that was supposedly like. According to the CNBC article, “Chapek confided to a friend that his tenure at Disney was ‘about three years of hell,’ defined by one overriding theme: his unrelenting fear that Iger wanted his job back.” And it seems Chapek’s unrelenting fears did ultimately become reality

So just what might have caused Chapek’s time to be reportedly defined as “hell.” Well, the article points out a few potential things.

For starters, the succession plan chosen by Iger and the Board of Directors was “somewhat unusual.” Chapek served as CEO and “CEO-in-training” in a way, while “Iger remained his boss and ran “creative endeavors” for 22 months as executive chairman.”

Interestingly, this was similar to the type of structure Michael Eisner had wanted when Iger was coming on as the new CEO. But, Eisner ultimately did not get to put that into play because he reportedly “lost his grip on the board.” Some members of the board resigned their seats and objected to the plan saying “Any arrangement that permits Mr. Eisner to remain as Chairman after relinquishing his position as CEO is contrary to best governance practices.”

Ultimately, Iger was able to assume leadership as CEO “without anyone hovering over his shoulder.” CNBC says, “This allowed him to move quickly on decisions that Eisner might not have agreed with, such as buying Pixar.” Chapek, however, would not be provided with that same level of freedom.

And when Iger announced his departure to Disney staff, he even jokingly called himself “Big Bob,” while referring to Chapek as “Little Bob.” CNBC calls this “a light reminder to employees about who was still the boss.”

Chapek also became CEO just as the COVID-19 pandemic situation was becoming increasingly more serious. Iger reportedly told a New York Times columnist that “A crisis of this magnitude, and its impact on Disney, would necessarily result in my actively helping Bob and the company contend with it, particularly since I ran the company for 15 years!”

This made Chapek furious. So much so that he called Iger and reportedly “told him he didn’t need a savior, dropping a carefully placed expletive or two.” Chapek complained to the Disney Board of Directors about the situation. He had been promised a seat on the Board but not given a date as to when that would happen. Following the release of these statements from Iger, Chapek demanded his seat and it was swiftly provided.

Reportedly, one Disney Board Member thereafter had a “strongly worded conversation with Iger about setting him up for success rather than undermining him.”

From there, CNBC argues that Iger and Chapek’s relationship “only deteriorated.” Privately, Iger would grumble about Chapek not involving him in company decisions, and Chapek reportedly knew Iger was complaining about him to confidants and Hollywood executives.

When Chapek started to work on reorganizing some of the Company to create Disney Media and Entertainment Distribution (DMED), he had a series of meetings with Iger. Iger supposedly didn’t try to stop Chapek, but he also didn’t give the changes his “full endorsement.” According to CNBC, “Chapek couldn’t tell whether Iger’s questions were a passive-aggressive way to signal disapproval or a genuine attempt to get more information.”

Ultimately, executives who lost some power under the new organizational structure complained to Iger, and Iger said he “didn’t agree with the reorganization — an assessment Chapek heard only indirectly.” Iger would go on to call some of the reorganization a “mistake” and essentially undo it upon returning as CEO.

There were little things that might have caused a strained relationship between Chapek and Iger too — from Iger not giving up his CEO office upon leaving the CEO role (which he particularly loved since it had a private shower) to Iger catching Chapek off guard by sharing that Chapek would lead the question-and-answer portion of an annual meeting two weeks after becoming CEO.

It eventually got to the point where Iger and Chapek were “barely speaking to each other.”

Once Iger left Disney in 2021 (after finishing his time as Executive Chairman) CNBC says that “Chapek could finally run Disney his way.” He moved into Iger’s office and made a number of executive changes. But some leaders also left “to coincide with Iger’s departure,” causing an “outflow of institutional knowledge” that Chapek had to work to combat.

The battles with Florida Governor Ron DeSantis (which started a little over a month into Chapek’s time without Iger) only complicated matters further. And things really took a turn when, in late September, Christine McCarthy (then CFO of the Walt Disney Company) “bluntly told the board the quarter’s financials were on pace to be very bad.” Chapek was reportedly “blindsided by McCarthy’s responses.”

All the while, Iger (despite having left the Company) reportedly “continued to talk with past and present Disney executives about Chapek and the future of the company, with several urging him to return to Disney.” Though Iger had previously denied the possibility of a return, it seems his tune later changed and 2022 led to the rumors of Iger’s return becoming true. In other words, Chapek’s fears became reality.

That’s a peek behind the curtain at what was going on at Disney during the transition from Iger to Chapek, Chapek’s time as CEO without Iger, and Iger’s ultimate return. Iger is set to remain as CEO through 2026, but considering the fact that his tenure has been extended before there is a possibility it could be extended again.

Who will Disney choose as the next CEO? Will that person live in fear of another Iger return? What transitional structure will be selected when it comes to succession planning? Much remains to be seen but we’ll be on the lookout for updates.

In the meantime, click here to see what Iger has said about Disney potentially being sold to Apple