What Does Disney Need From Its New CEO? Five Things To Look For.

Disney chief executive officer Bob Iger has less than two years left on his contract, and speculation is ripe over who will succeed him—for a second time. Four years ago, Iger nominally handed over the company’s reign to Disney Parks and Resorts Chairman Bob Chapek, whose successful tenure in that position included the launch of Shanghai Disneyland and led the unit to impressive increases in operating income.

But Chapek lasted just two years in the position before being replaced by his predecessor. The two had an ugly falling out that overshadowed Chapek’s tenure, and many would argue Chapek never really had a chance because of the pandemic, which prompted Iger to step in on many matters due to his wealth of experience.

As Disney looks for its next CEO, here are some things that person will need to bring to the job to succeed and avoid the drama of the last succession.

1. A Well-Rounded Knowledge Of All Disney Holdings

One widely held reservation about Chapek was his lack of experience and knowledge about the TV business and sports programming. Considering ABC and ESPN are tentpoles of the company—the sports network alone generates more than $4 billion in revenue, and ESPN+ is one of the few profitable streaming services—that deficit was a major hindrance. Whoever takes over needs equal comfort with the business and creative dealings as well as all aspects of the company’s holdings, from TV to studios to theme parks.

2. A Good Rapport With And Spot On The Board

Chapek’s appointment came about fairly quickly, and he did not have the time to cultivate good relationships with board members that perhaps could have calmed some of their concerns about his tenure. For instance, when the relationship between Chapek and Iger soured, the former did not have the standing with board members to effectively argue his case.

The support of the board is a critical part of success for the next Disney CEO. They must be empowered to actually take over, and that also means receiving a spot on the board of directors, something that Chapek was not initially offered (he later was added). Of note, previous CEOs had been afforded a board spot; the very powerful Michael Eisner even served as chairman while he was CEO.

3. An Air Of Gravitas

Granted, perceptions of people can often be wrong. But Chapek was criticized both by the media and the board for seeming a bit too “happy go lucky,” especially when delivering some less-than-stellar financial information—which, let’s face it, was during the pandemic, so everyone was hurting. Still, once your reputation is set, it’s hard to walk it back. A CEO needs to show they are taking everything seriously.

4. The Traditional CEO’s Office

It sounds like a potentially petty little thing, taking over the office that Iger and Eisner before him occupied. But symbols can be powerful in a large corporation, and the fact that Chapek was not given the office (Iger kept it) impacted how people saw him. It also led to confusion about who was “really” in charge.

5. The Confidence To Banish Iger

When Chapek was appointed CEO in 2020, he was directed to report to the board and Iger—who apparently wanted to maintain final say in the company. That’s a tricky balance for a new leader to pull off. Having the old one stick around questions their leadership mandate and can cause confusion about who employees and board members should listen to.

For the new CEO to succeed, they need Iger to leave once and for all. And they need to feel confident enough to make that happen. It is no easy feat because Iger is a larger-than-life figure who has presided over Disney for two decades. The man has power and sway for a reason. He has had enviable success and helped the company through some rough times. But the new CEO needs a mandate to lead by themselves.