Disney board contacted Iger on Friday after bad earnings report

Disney The board approached Bob Iger on Friday without any other serious candidates in mind to replace Bob Chapek as CEO, CNBC’s David Faber said Monday, citing sources.

According to Faber’s sources, the board contacted Iger and discussed replacing Chapek after worries that arose after Disney’s latest quarterly earnings report peaked.

While some internal candidates were identified who could eventually fill the position, the board of directors was reluctant to appoint someone new to the position given all the various pressures on the company, Faber said.

On Sunday, Disney said it would replace Czapek with Iger as CEO, and that would take effect immediately. In the past few years, Chapek has come under fire for his management of Disney. According to Faber, Capek was notified on Sunday evening.

Disney reported fiscal fourth quarter earnings earlier this month, disappointing with profits and some key revenue segments. The company also warned that its strong streaming numbers are likely to dwindle in the future. Three days later, Chapek told executives that Disney would cut costs through hiring freezes, layoffs and other measures.

The company’s shares rose about 9% on Monday after news of Capek’s replacement.

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