Disney (NYSE: DIS) CEO Bob Iger will be stepping down from his position as of Tuesday, Feb. 25. Iger will assume the role of executive chairman for Disney's "creative endeavours" and will be replaced by Bob Chapek. Chapek previously lead the themes park division at Disney. He will still be reporting to Iger in his new position.
Iger, one of the most respected CEOs in the U.S., has led Disney since 2005 and has long been the man behind Disney's expansion and success. Iger launched Disney+, enacted Disney's acquisition of Fox's entertainment business, added marvel and Star Wars to Disney's roster, and orchestrated Disney's purchase of Pixar Animation Studios. He also launched a new theme park in Shanghai, expanding Disney's reach across the globe.
Iger's decision to step down came as a shock to Disney employees and rival media executives. Iger's succession has been in the works for some time now, but last year, Iger told investors he would be stepping down in 2021. During an investor call, he ruled out health problems and political issues as the reason for the sudden change. Iger says he moved up the timeline so he could focus more on Disney's creative side.
"With everything else falling into place, the time seemed right," Iger said, "With the successful launch of Disney's direct-to-consumer businesses and the integration of Twenty-First Century Fox well underway, I believe this is the optimal time to transition to a new CEO."
Chapek has been with the company since 1993 and became Chairman of Disney Parks, Experiences and Products in 2018. Chapek released a statement saying he is "honored and humbled to assume the role of CEO of what I truly believe is the greatest company in the world, and to lead our exceptionally talented and dedicated cast members and employees."
Iger will stay with the company until the end of his contract on December 31, 2021. The fact that he will stay in the Disney fold has eased the minds of some investors, but Disney shares still fell after-hours.