This news was revealed by CNBC and I have to say that I personally am shocked at this decision.
The outlet reported that Bob Chapek’s new contract will now run until July 2025, which means that he will be in the job for at least another three years.
Chapek’s contract was set to expire in February 2023 which would have been three years after he rather unexpectedly took over as CEO from Bob Iger.
It was revealed that Disney’s board, which met Tuesday in Florida, voted unanimously to extend Chapek’s tenure to July 2025.
“Disney was dealt a tough hand by the pandemic, yet with Bob at the helm, our businesses — from parks to streaming — not only weathered the storm, but emerged in a position of strength,” said Susan Arnold, chairman of the board, in a statement Tuesday.
She added: “In this important time of growth and transformation, the Board is committed to keeping Disney on the successful path it is on today, and Bob’s leadership is key to achieving that goal. Bob is the right leader at the right time for The Walt Disney Company, and the Board has full confidence in him and his leadership team.”
Is Disney right to extend Bob Chapek’s contract?
It certainly hasn’t been smooth sailing for Chapek since he took over from Iger.
There have been controversies and scandals since the beginning of his tenure and Chapek has been at the heart of a number of them himself.
There was the whole issue with Scarlet Johansson’s contract for Black Widow.
She ended up suing Disney and they settled outside of court.
Then we heard of a rift between Chapek and the creatives inside of Disney.
Pixar, for instance, hasn’t been happy about their movies being released straight to Disney Plus.
It’s been bad for their business and it’s meant that the last few movies have not made as much money at the box office as they would have done if they had been released in cinemas.
Chapek’s tenure has not been good for business.
Disney’s stock is down around about 38% this year as of Tuesday’s close.
Then there was the whole scandal involving Disney and Florida’s ‘Don’t Say Gay’ bill.
It was revealed that Disney had been supporting Florida Governor, Ron DeSantis.
Is Bob Chapel eliminating all his opposition at Disney?
Finally, there was the news that Bob Chapek opted to fire Peter Rice, Disney’s most senior television content executive.
At the time, the board claimed that Chapek had their full support for the decision.
We’ve been hearing that that might not have been the case.
Chapek has basically been living off the success of Disney Plus and shows such as The Mandalorian and WandaVision.
Never mind the fact that these shows and Disney Plus were set into motion by the previous CEO, Bob Iger.
The real issue here is that Bob Chapek seems to have the board under his full control and this might not be good for business.
Maybe Chapek might learn how to be a better leader, however, at the moment it feels like he’s eradicated all his opposition and is in full control.
It seems like there might be dark times ahead for the House Of Mouse.
What do you make of this news?
Do you think Disney is doing the right thing by extending Bob Chapek’s contract?
Let us know your thoughts in the comments below.
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