Disney opted to rehire Bob Iger as general manager after receiving internal complaints from senior management that Bob Chapek was unsuitable for the job, according to people familiar with the matter.
The change of direction happened quickly, blinding Chapek and his closest allies. by Disney The board approached Iger on Friday, with no other serious candidate in mind to replace Chapek as CEO, CNBC’s David Faber reported Monday, citing sources.
The board’s outreach to Iger and discussion to replace Chapek came after the board combined internal complaints about Chapek’s leadership with concerns following Disney’s latest quarterly earnings report, said the people, who asked not to be named because the discussions were private.
On Sunday, Disney announced it would replace Chapek with Iger as chief executive, effective immediately. Chapek had been criticized for his management of Disney in recent years. Chapek was informed on Sunday evening, Faber reported.
Chapek and his entourage were taken aback by the news, one of the people said. The status of Chapek’s right-hand man, Kareem Daniel, is murky and depends on the direction Iger wants to take in the business, two of the people said. Daniel leads Disney Media and Entertainment, a division created following the company’s reorganization by Chapek.
A Disney spokesperson declined to comment. Chapek did not respond to a request for comment.
Although some internal CEO candidates have been identified who may be able to take the position over time, the board did not want to appoint anyone new to the position given the various pressures on the company. , reported Faber.
Disney announced its fiscal fourth quarter results earlier this month, disappointing on earnings and some key revenue segments. The company had also warned that its strong streaming numbers were likely to decline in the future. Three days later, Chapek told executives that Disney would cut costs by freezing hiring, laying off staff and taking other measures. The cost-cutting memo prompted an internal backlash against Chapek, one of the people said.
Shares of the company rose on Monday after Chapek’s replacement was announced.
– CNBC’s David Faber contributed to this article.