Disney has to find a successor for Bob Iger again. 5 things to look out for

Disney CEO Bob Iger's contract expires in less than two years, and speculation is already rife as to who will succeed him – for the second time. Four years ago, Iger officially handed over the reins of the company to Bob Chapek, chairman of Disney Parks and Resorts. During his successful tenure, he was instrumental in the opening of Shanghai Disneyland and led the division to impressive increases in operating profit.

But Chapek only lasted two years in the position before being replaced by his predecessor. The two had an ugly falling out that overshadowed Chapek's tenure, and many would argue that Chapek never really had a chance due to the pandemic, leading Iger to step in on many issues due to his wealth of experience.

Disney is currently looking for its next CEO. Here are some things the person will need to bring to the table to be successful and avoid the drama of the last succession.

1. Comprehensive knowledge of all Disney investments

A common reservation about Chapek was his lack of experience and knowledge of the television business and sports programming. Given that ABC and ESPN are the mainstays of the company – the sports network alone generates more than $4 billion in revenue and ESPN+ is one of the few profitable streaming services – that deficit was a major obstacle. Whoever takes over will need to be equally familiar with the business and creative affairs, as well as all aspects of the company's holdings, from TV to studios to theme parks.

2. A good relationship with and position on the board

Chapek's appointment was relatively quick, and he did not have time to build good relationships with board members that might have allayed some of their concerns about his tenure. For example, when relations between Chapek and Iger deteriorated, the former did not have the standing with board members to effectively represent his cause.

Board support is critical to the success of the next Disney CEO. He must be given the authority to actually lead, and that also means getting a seat on the board, something Chapek was not initially offered (he was added later). Notably, previous CEOs have been granted a seat on the board; the very powerful Michael Eisner even served as chairman while he was CEO.

3. An aura of dignity

Granted, people's perceptions can often be wrong. But Chapek has been criticized by both the media and the board for appearing a bit too cavalier, especially when he delivered some less than stellar financial information – and, let's face it, that happened during the pandemic, so everyone suffered. But once you build a reputation, it's hard to lose it. A CEO has to show that they take everything seriously.

4. The traditional CEO office

It sounds like a potentially petty move to take over the position previously held by Iger and Eisner. But symbols can be powerful in a large company, and the fact that Chapek didn't get the position (Iger kept it) affected perceptions of him. It also led to confusion about who was “really” in charge.

5. The confidence to banish Iger

When Chapek was named CEO in 2020, he was tasked with reporting to the board and to Iger – who apparently wanted to have the final say in the company. That's a tricky proposition for a new boss. Keeping the old boss in the company undermines his leadership mandate and can create confusion about who employees and board members should listen to.

For the new CEO to succeed, Iger must go for good. And they must have enough confidence to make that happen. That's no easy task, because Iger is a larger-than-life personality who has led Disney for two decades. The man has power and influence for a reason. He has had enviable success and helped the company through some difficult times. But the new CEO needs a mandate to lead himself.