Disney's New CEO Is the Right Choice
No one wanted to see Bob Iger go as Disney (NYSE: DIS) CEO, but here we are. After his 15 years at the helm -- with four contract extensions along the way -- his abrupt departure on Tuesday was jarring. New CEO Bob Chapek will do just fine, even if Wall Street's initial reaction and outrage on social media suggest otherwise.
Let's start by tackling the stock market's reaction to the shocking news. Iger had another 22 months on what was supposed to be his final contract extension. Wall Street doesn't like uncertainty, and Iger is handing over the reins at a very challenging time. Disney is switching drivers in a moving vehicle on a bumpy road, and that's always risky. We will eventually find out his reasons for leaving at this juncture, but to be fair, he's not going away completely. He will assume the role of executive chairman, active in the boardroom and directing Disney's creative endeavors through the end of next year. The market's reaction is perfectly natural. When someone is doing a good job -- as Iger has for the most part -- investors aren't going to applaud change.
Image source: Disney.
Source Fool.com
