Bob Chapek had been the head of Disney for a good amount of two and a half years. His tenure has had ups and downs, yet he was able to have some wins during his tenure. He made sure to keep Disney’s subscribers intact and increased them in numbers during the Covid-19 pandemic. Not only this, but during the pandemic, Chapek did not settle for the offers made by an activist investor. People are still wondering why is Bob Chapek ‘controversial’.
Recently, Disney made a very surprising announcement that left everyone a bit confused. The former CEO Bob Iger, would be returning to the platform as the head of the company. This means that Bob Chapek, who was serving as a chairman of Disney Parks, Experiences, and Products, would be stepping down immediately.
Why would Disney make such an abrupt change? Is there a major hidden reason behind this decision? Were the fans kept in the dark about the wrongs of Bob Chapek? Stay tuned till the end of the article to find out.
Why Is Bob Chapek Controversial?
The reason Bob Chapek is considered controversial is because of his questionable decisions. His downfall had started from his response to the “Don’t say gay bill”. Critics had been after him and had brought the company’s status into question also.
Disney, which is very much appreciated by its audience, has been criticized for not taking a public stance on the bill. Don’t say gay bill is a law in Florida that prohibits educators from discussing gender identity and sexual orientation in the classrooms. This had increased anger in people, and those consequences had been harmful to the channel and Chapek both.
Response About The Bill
Initially, Bob Chapek had sent an email to the employees but had refused to give a public statement about the same regarding the bill. He believed that it wasn’t necessary to make public statements. This became a huge reason for the public to feel bad. Fans felt like Chapek wasn’t good enough to fill in for the previous CEO.
The previous CEO was loved for expressing openly his beliefs and where he stood during such matters. The consequences of this silence were not only by the public but also by the Disney employees. The employees had walked out of their jobs stating that Bob was not able to understand the severity of the situation and the threat bill stated to the LGBTQ community.
Bob Chapek Apologises
Chapek had tried his best to keep Disney out of the political affairs. He didn’t want to bring the company’s reputation into question. Unfortunately, this didn’t work when Chapek condemned the bill publicly on Twitter, and Disney posted screenshots about the same on the official Twitter handle.
This led to huge battles between Walt Disney and Ron Desantis-State’s Republic Governor. The company’s reputation was hurt badly by Desantis’s remarks about Disney trying to be a “woke company” while having questionable interests in working with China for a private event.
Disney’s Involvement In The Bob Chapek Controversy
Before this matter became public, Chapek had told the shareholders how he had raised his concerns and expressed his disappointment to Desantis personally. To stand up for his employees, Chapek had decided to pause his contribution to Florida.
Disney had previously made Donations of $50,000 for Desantis’s reelection. Disney is also, one of the major contributors to Florida’s huge tourism industry.
Bob Iger or Bob Chapek?
Several Disney employees wanted Iger to speak about this bill and how Chapek was lacking as the CEO. In June, Disney announced a three-year contract extension till 2025. Unfortunately, with the falling economy in America, Disney started facing a downfall like anything.
He had announced a freeze in hiring and made sure to make job cuts. Streaming success wasn’t enough to keep Chapek’s job intact. Disney sadly lost $1.5 billion in the fourth quarter.
Bob Iger’s return to Disney was not only accepted by investors, but they were happy about the decision as well. Disney shares went approximately 7% high after dropping to 38% this year itself. Maybe, Bob Iger returning to Disney is a good decision for the platform.