Is Chapek on the verge of being fired?

[Aprilshack]

Because he was SUPPOSED to be. And traditionally he normally would be. And because people aren't stupid - they know the reason his plans abruptly changed is because of PR reasons, with the quarter results etc... As others said, if it was a true conflict he would have done a quick live feed, taped a video etc...

Or just turned up on the Saturday or Sunday.

 

[Aluminum Falcon]

1000% this.

Company is absolutely performing… especially given they had a huge revenue stream crushed by the pandemic.

The market factors things like the pandemic into EPS, so they missed earnings, with the lower number built in. It's not like they are comparing this quarter to Q3 2019. I personally think that they have been overvalued for months now, and the market was looking for any excuse to bring them back down to meet level. Just my opinion, but i think they will settle in the mid $140's. and depending on next quarter it may continue to drop from there

 

[ChipnDale79]

i havent read all the posts...but my thoughts are that when he was named CEO, it was at a time where the future was in doubt and he would be the one to see the company though Covid. After Covid, he might not be around.

I hope he wont be around...but who knows what will happen.

 

[igrsod]

One can hope. I also hope he doesn't do too much damage to the Happiest Place on Earth.

 

[Aluminum Falcon]

i havent read all the posts...but my thoughts are that when he was named CEO, it was at a time where the future was in doubt and he would be the one to see the company though Covid. After Covid, he might not be around.

I hope he wont be around...but who knows what will happen.

People have brought up this point about getting the company through COVID for the reason Chapek was named CEO, a lot on these threads, but that doesn't really line up. He was named CEO in Feb 2020, and I'm sure it was something the company knew back in 2019 before going public with it. The COVID reasoning to me just doesn't line up, i think it was more of an Iger wasn't willing to extend his contract again, and this was the best they could muster at the time

 

[Lumpy1106]

i havent read all the posts...but my thoughts are that when he was named CEO, it was at a time where the future was in doubt and he would be the one to see the company though Covid. After Covid, he might not be around.

I hope he wont be around...but who knows what will happen.

The timing, as I recall, was that Chapek was named CEO, stock price took a dip, COVID started being a thing. Iger agreed to stick around a while until the COVID strategy was established, but his plan was to exit - period. What you are seeing now, Chapek as CEO, was the plan before COVID.

 

[middlechild]

From a bus driver: The board offered Iger a contract renewal if he increased profit 5% without sullying the corporate name. He declined, his best ideas had already been proven and he had no new tools to offer. Chapek stepped in and said "hold my beer....". Now we have Genie+ and ILL$, smaller portions, dropping expensive Star Wars movies, ESPN staff cuts last year, etc. Seems like Iger gained profit by adding, and Chapek is gaining profit by cutting, or at least charging for "gimmies". But if the parks are full this week, was he wrong in practice? A stock retrench for new heights?

 

[kbelle8995]

I doubt it

 

[ChipnDale79]

But if the parks are full this week, was he wrong in practice? A stock retrench for new heights?

I'll just say this, i think there is a vacation cycle, meaning decisions made 6 months to a year ago, effect the decisions of those that are at disney vacationing today. Many people dont plan or cancel vacations at the last minute because they're upset with the place they're going to vacation, unless its something really drastic. What you're more than likely to see (at least for us) is people to make decisions today, about vacations next year. So the decisions disney is making today, may not have a real effect until next year.

the nickle and diming along with genie plus effected our decisions for next year, but we were at disney this year.

 

[TiggerBouncy]

I don't believe this scenario at all. But lets say it was true - who is the likely successor? The Disney board has always had a problem with their succession plans.

Elon Musk

 

[motherof5]

People have brought up this point about getting the company through COVID for the reason Chapek was named CEO, a lot on these threads, but that doesn't really line up. He was named CEO in Feb 2020, and I'm sure it was something the company knew back in 2019 before going public with it. The COVID reasoning to me just doesn't line up, i think it was more of an Iger wasn't willing to extend his contract again, and this was the best they could muster at the time

I agree.

 

[The WDW 3]

I don't believe this scenario at all. But lets say it was true - who is the likely successor?

I’ve heard that it will likely be Steve Porter. All restaurants in the parks will feature Mac & Cheese and Chicken Nuggets.

 

[Princess Madeleine]

People have brought up this point about getting the company through COVID for the reason Chapek was named CEO, a lot on these threads, but that doesn't really line up. He was named CEO in Feb 2020, and I'm sure it was something the company knew back in 2019 before going public with it. The COVID reasoning to me just doesn't line up, i think it was more of an Iger wasn't willing to extend his contract again, and this was the best they could muster at the time

Shanghai and Hong Kong parks closed in Jan 2020. I remember hearing speculation on the virus around Christmas/New Year. It's a quick turnaround, but I wouldn't rule it out as being an important factor.

 

[hhisc16]

As the stock prices continue to fall, Chapek must be getting nervous...

 

[Aluminum Falcon]

As the stock prices continue to fall, Chapek must be getting nervous...

HAHA, they did just go to record highs a few months ago..... the market ebbs, and flows, don't overreact to the short term.

 

[Aluminum Falcon]

Shanghai and Hong Kong parks closed in Jan 2020. I remember hearing speculation on the virus around Christmas/New Year. It's a quick turnaround, but I wouldn't rule it out as being an important factor.

I'm sure Iger weighed the Virus when considering stepping down, but to think that the board just had a guy in waiting incase Poop hit the fan is a bit to far. Vetting out a CEO in a company the size of Disney would take months and months. It's not like they had an emergency crisis button that automatically activated Chaepek haha

 

[CBMom01]

I'll just say this, i think there is a vacation cycle, meaning decisions made 6 months to a year ago, effect the decisions of those that are at disney vacationing today. Many people dont plan or cancel vacations at the last minute because they're upset with the place they're going to vacation, unless its something really drastic. What you're more than likely to see (at least for us) is people to make decisions today, about vacations next year. So the decisions disney is making today, may not have a real effect until next year.

the nickle and diming along with genie plus effected our decisions for next year, but we were at disney this year.

Pre-Covid I was very much a last minute vacation person. I would also plan some big ones well in advance, I would sometimes book when I realized that a window of time was about to open up or felt we really needed a reset

 

[ChipnDale79]

Pre-Covid I was very much a last minute vacation person. I would also plan some big ones well in advance, I would sometimes book when I realized that a window of time was about to open up or felt we really needed a reset

yeah..i know there are a lot of people out there like that, but i have a feeling the vast majority of people that go to disney, didnt plan that vacation at the last minute.

 

[Aluminum Falcon]

yeah..i know there are a lot of people out there like that, but i have a feeling the vast majority of people that go to disney, didnt plan that vacation at the last minute.

I agree that most don't plan it last minute, i just think most people plan it out, and then budget. The price is the price, and you either can or can't afford it, is how i see it for most people. i don't think people break down most bills, thinking of cell phones, electric, gas, ect., and i especially don't see most doing it for a vacation.

On top of that, most families, (i believe) know where they want to go, and budget based around that destination. Younger couples with more flexibility would fall into a demographic that shopped around, but they do not make up the bulk of Disneys guests, and Disney is probably ok edging them out, because they are more limited in capital once they get into the parks

I am aware people shop vacations around, and there's nothing wrong with that. I just feel like the bulk of people do not

 

[Wakey]

Another view. Disney has massive cross pollination. I bet the percentage of Disney Parks fans buy on average many more Disney+ subscriptions, buy more DVDs, go on more cruises, buy more merchandise online etc than someone who isn’t that bothered, and maybe goes on vacation to WDW or DL once.
The more Mr Chapek hacks off those fans, the more likely they are to be done with Disney- not just the park, but the merch, Disney+ etc.
Disney+ is struggling due to lack of content, and the stuff that’s there often mainly appeals to Disney fans. Yes, a wider base will like to see the latest Marvel or Pixar film, but they can maybe take it or leave it- particularly when taking it means subscribing to a Disney centric service, which they are just not that bothered about.
Driving away Disney fans is potentially quite detrimental to the entire business, not just Parks.
If I was a shareholder, I wouldn’t be overly happy at the moment,