Putting an arbitrary timetable on how long a successful CEO holds their position makes very little sense. It's something Walt Disney (DIS) did to Michael Eisner, but in that case, the company had a clear successor in place in Bob Iger.
In Iger's case, the CEO was essentially forced to step aside for Bob Chapek because of his age and sort of arbitrary Disney historical policies. Chapek wasn't a clear successor. He was actually somewhat of a surprise choice and his ascension caused some other top talent -- basically, the other people who wanted the top job -- to leave the company.
It never makes sense to move on from a highly successful CEO who still wants the job unless the next person in line seems like they have an even higher ceiling. You can argue that was the case when Iger replaced Eisner (and history now shows that you would have been correct).
But, pushing out Iger the first time was a mistake and it's one that Disney seems intent on repeating. Iger signed a two-year deal when he stepped back in after Chapek got ousted and finding a successor was one of the tasks named in the press release celebrating Iger's surprise return.
That's something that should happen naturally not on a specific timetable, but a new report from Deadline suggests that Disney plans to stick to the two-year timetable and that a favorite to take over has emerged.
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Disney Is Handcuffing Iger From Day One
Iger should be Disney's CEO until it's proven that he's no longer the best person for the job or he decides he no longer wants to do it. When he left the first time it was clearly against his will and it made little sense to pick a successor who did not agree with his core vision.
Chapek structurally changed Disney and basically, the first thing Iger did was change it back. That largely meant putting more power into the hands of the company's creative leaders instead of centralizing decisions about platforms and release dates.
It makes sense that whatever Iger puts in place should be the framework for the next CEO's structure. That may happen, but Disney very clearly wants to identify a successor sooner rather than later, which puts Iger in an awkward position.
The new CEO is essentially a lame duck and that may make hiring and even making creative decisions difficult. Will top executives and creative talent want to come to Disney when the company's strategies could change under a new CEO?
Most movies take at least a year, maybe longer to develop. Will Disney be able to revitalize its Star Wars film franchise, get Pixar back on track, and lure top talent to helm Marvel projects if the top boss may change before those movies and streaming shows are set to launch?
Disney May Have its Next CEO
It's hard to believe that Iger only wants to run Disney for two years. Realistically, that was the deal he had to make to get the job back and Deadline is reporting that his successor has already been identified.
Chief financial officer Christine McCarthy, who has been reported as someone heavily involved in ousting Chapek, has emerged as the frontrunner.
“Christine has always been a force to be reckoned with, but you have to put her on a list of top five possibilities after the last few weeks,” a Disney insider told the website.
Iger has a long working relationship with McCarthy but it's hard to imagine he wants a bean counter in charge of Disney, a company built around creativity. McCarthy was reportedly the person who got Disney's board worried about losses at Disney+, even though the investment in the streaming service essentially followed the trajectory Chapek had been very public about.
Whether it's McCarthy or anyone else in Iger's C-suite who ultimately takes the job, that change should not happen until Iger chooses to step away or proves that he has lost his touch. Disney doesn't seem willing to do that, so the next Disney CEO may very well only hold the job until they make a mistake or two and someone else with their eye on the CEO chair can suggest Iger round three.
