Disney extends CEO contract after ‘Don’t Say Gay’ law storm – Business Insider
Disney announced on Tuesday that its board of directors unanimously voted to extend CEO Bob Chapek’s contract for another three years, before it was set to expire in February.
Chapek took over as CEO in early 2020 after Bob Iger stepped down — not long before it was forced to close down its theme parks and delay its movies amid the coronavirus pandemic. The board cited Chapek’s leadership during the pandemic as a reason for its decision.
The move was expected. Chairperson Susan Arnold had recently defended Chapek in a statement after he unexpectedly fired the company’s top TV exec, Peter Rice, a beloved figure in the entertainment industry. Arnold said that Chapek and his leadership team “had the support and confidence of the board.”
But Tuesday’s announcement puts to rest any lingering doubts some may have had after public controversies and media reports that raised speculation over Chapek’s longevity in the role.
Notably, Chapek faced heavy criticism over his initial silence on Florida’s “Don’t Say Gay” bill, given the company’s history of political donations in the state, including to sponsors of the bill. The law banned discussion of gender and sexual orientation in kindergarten through third-grade classrooms.
Chapek originally told employees that the company wouldn’t be commenting on the legislation, letting its content speak for itself. After backlash from staffers, Chapek reversed course and apologized in a company memo, saying that Disney would pause political donations in Florida. It prompted Gov. Ron DeSantis, a Republican, to sign a bill stripping Disney of its private-government status in the state.
The Florida controversy prompted some, including staffers of the Disney-owned animation studio Pixar, to speak out on Disney’s lack of LGBTQ+ representation in its content.
In other words, it was one of the biggest public controversies for the company in recent memory. Insider’s Claire Atkinson reported last month that speculation was swirling throughout Hollywood about who could replace Chapek, and that Iger, the former CEO, felt that Disney wasn’t being managed well.
But, Chapek now has another three years, at least, to change the narrative and protect his legacy.
One of the company’s top priorities, its streaming service Disney+, is doing well. It added nearly 8 million subscribers in its most recent quarter, according to its latest earnings report in May, and had 138 million subscribers worldwide. Disney has set a goal of at least 230 million subscribers by 2024.