Disney has fired Peter Rice, its most senior television content executive, according to a report from CNBC. He will reportedly by succeeded by Dana Walden, Rice’s top lieutenant.
Rice started working at Disney (DIS) in 2019, the same year the company launched it’s massively popular Disney+ streaming service, and the year it finalized its deal to purchase 21st Century Fox.
According to CNBC, Rice was told he wasn't a cultural fit at Disney. For example, he often clashed with former Disney head of streaming Kevin Mayer over who got to green light shows for Disney+.
But while Rice is gone, Disney’s Board has indicated that it is sticking by Disney CEO Bob Chapek, who probably appreciates the support after the year he’s been having.
Bob Chapek Needed A Win After A Rough Year
Disney CEO Bob Chapek has had a rough year so far especially in Florida where a controversy over the state's so-called Don't Say Gay Bill," caught the CEO both within and outside the company.
The bill, pushed by Florida Governor Ron DeSantis and passed by his fellow Republicans, prohibits classroom instruction on sexual orientation or gender identity from kindergarten through third grade.
Critics of the bill say that it will lead to increased harassment and bullying of LGBTQ youth, who already face a disproportionate risk of bullying and a greater risk of suicide compared to their straight, cisgender peers.
Disney employees began protesting that the company and Chapek in particular wasn’t doing enough to denounce the bill and to protect Florida’s LGBTQ community.
Eventually, Chapek gave a more full-throated denunciation of the bill, and pledged to donate $5 million to organizations, including the Human Rights Campaign, that work to protect LGTBQ+ rights.
That in turn prompted a political response, as DeSantis and other Republicans removed Disney World's designation as a special tax district. While the move appeared to penalize Disney, it actually has the effect of increasing taxes in Florida “somewhere between $1 billion and $2 billion a year.”
Chapek’s 2022 isn’t without its upsides, however. He took over as CEO in February 2020, just before the pandemic forced Disney’s theme parks the world over to close down, a tough card for anyone to have to play.
But under his leadership, the parks have bounced back. Chapek noted in a second-quarter earnings call that they “grew per capita spending by more than 40% versus 2019.” Disney has also scored box office hits like "Doctor Strange in the Multiverse of Madness" and Disney+ is on track to reach “230 million to 260 million Disney+ subscribers by fiscal '24.”
Getty Images/TS
Chapek Is Not Going Anywhere, For Now
While Chapek has been widely criticized by both sides of the political spectrum, the Disney executive board continues to back him, according to the Hollywood Reporter.
In a statement, Disney board chair Susan Arnold said, “The strength of The Walt Disney Company’s businesses coming out of the pandemic is a testament to Bob’s leadership and vision for the company’s future. In this important time of business growth and transformation, we are committed to keeping Disney on the successful path it is on today, and Bob and his leadership team have the support and confidence of the Board.”
Chapek’s contract is set to expire in nine months, and there’s been widespread speculation as to what will happen to him, amidst the increased scrutiny he’s been under. In fact, some insiders had speculated that Rice would end up in Chapek’s job.
Chapek had previously negotiated a new deal with Rice last summer. Rice reportedly has more than two years remaining on his contract and will receive a substantial payout.
