Former Walt Disney (NYSE: DIS) chief executive Bob Chapek said he was one of the first to spot the leadership potential in his subordinate, Josh D'Amaro. Times have changed: D'Amaro has now been Disney CEO for less than a year, and Chapek has some criticism for the protege he once mentored.
Speaking on the latest episode of Yahoo Finance's "Power Players" podcast, Chapek said: "Josh and I haven't been in touch. The day I was fired, he sent me an email expressing his regret, and that was the last time I heard from him. By the way, I don't blame others for not associating with me. You know, the outside world called us 'Big Bob and Little Bob,' or 'Bob Iger and Bob Chapek,' and in that kind of adversarial public environment, being in contact with me did no good for their careers, and there were also hints suggesting they had better not have any dealings with me."
Chapek has just published a memoir, "Behind the Castle Walls," which recounts his ups and downs at Disney. He spent nearly thirty years at the entertainment giant, starting in the home video division, then running the consumer products business, and later taking charge of the massive parks, experiences and products segment; in February 2020, he succeeded Bob Iger as chief executive.
Just as he took the top job, the COVID-19 pandemic dealt a heavy blow to Disney's theme parks, movie theaters and other businesses. At the same time, he pushed through a major organizational restructuring and continued to aggressively expand the streaming business. During his tenure, he repeatedly clashed over talent deals and also came into conflict with Iger, who was then executive chairman, making his position increasingly difficult. In June 2022, Disney's board unanimously approved a three-year contract renewal for Chapek. Yet just five months later, on November 20, 2022, the board removed him and brought Iger back as CEO.
Chapek said the purpose of writing the book was to reclaim control of the narrative around his time at Disney; he believes Iger seriously distorted how the public viewed him. As for the advice he would give D'Amaro, Chapek believes his successor must find a brand-new growth driver for Disney.
"Josh knows the importance of brands deeply, and no one needs to teach him that. That is very valuable. But this company urgently needs a growth engine," Chapek said. "Back then, even though our cash flow was not plentiful, I still tried my utmost, hoping to turn streaming into the company's growth business. Think about it carefully: broadcast television, cable television, ESPN—the brands are strong, but growth is extremely difficult; the cost of sports rights will swallow up almost the vast majority of revenue. So the company must have a growth engine. If streaming no longer plays that role, and if the rumors are true that the company is shifting to a distribution strategy not tied to specific channels, then Disney must find another growth vehicle."