Disney CEO hits snag in bid to remake company in his image

[LOS ANGELES] Two years into his job, Walt Disney chief executive officer (CEO) Bob Chapek is still finding it hard to put his mark on a company where creative employees can be vocal and public critics of management, and consensus-building is often preferred to top-down decisions.

This week's brouhaha over Disney's stance on a controversial Florida school bill is just the latest incident where Chapek has run into trouble while carving out a different path than his predecessor, Bob Iger.

The company was criticised last year for its sharp rebuke of actress Scarlett Johansson after she sued Disney over a pay dispute.

A 2020 reorganisation that removed decision-making authority from the company's TV and film executives continues to rankle the creative community.

Any executive transition can be challenging, especially when it involves a figure as revered as Iger was at the end of his nearly 15-year tenure. It took Disney's former CEO years to grow into his elder statesman role.

Iger was also considering a run for US president in his later years at the company, something that may have influenced his public policy positions.

Longtime Disney observers and former employees believe Chapek and his advisers misjudged the resolve of their own rank and file in the Florida situation - a hard lesson for a CEO trying to reshape a media giant for a new era. Chapek on Friday apologised to employees for not taking a tougher stand against legislation that would ban schools from discussing sexual orientation and gender identity with younger kids.

"It is clear that this is not just an issue about a bill in Florida, but instead yet another challenge to basic human rights," Chapek said in the statement. "You needed me to be a stronger ally in the fight for equal rights and I let you down. I am sorry."

Chapek apologised just 4 four days after he told employees Disney shouldn't take public stands on controversial matters because its positions could be "weaponised" by other sides.

After that decision drew criticism from Disney employees, he reversed course and said the company would publicly oppose the Florida bill. Iger, who ran Disney from 2005 to 2020, was known for his smooth manner and his close relationships with talent.

Chapek, a nearly 30-year veteran of the company, is known less for his people skills and more for his ability to make tough decisions and generate profits. The Florida legislation, which bars schools from discussing sexual orientation in grades K through 3, was bound to be polarising. Proponents argue it puts parents in control of how such issues are discussed. Critics call it the "Don't Say Gay" bill.

Disney insiders knew there was a high likelihood that if they took a stand against the bill publicly, they would become a target of conservatives - yet another example of liberal Hollywood trying to tell people how to live their lives.

But Disney has long championed LGBTQ rights, offering benefits to same-sex partners and hosting gay pride events at its theme parks. In 2016, the company joined other businesses in protesting a bill in Georgia that would have allowed religious organsations to deny services to those who violate their "sincerely held religious belief." It was vetoed by the governor.

Iger, now retired, retweeted a post from President Joe Biden denouncing the Florida bill in late February.

"I'm with the President on this!" Iger wrote. "If passed, this bill will put vulnerable, young LGBTQ people in jeopardy." Chapek publicly stayed mum on the issue for a couple of weeks as calls for the company to take a position mounted. He broke his silence on March 7.

"Corporate statements do very little to change outcomes or minds," Chapek wrote. "Instead, they are often weaponised by one side or the other to further divide and inflame."

Disney staffers began speaking out against that position, including employees at the company's well-known Pixar division.

"Disney CEO Bob Chapek did not unilaterally condemn this homophobic bill, but instead defended the company's contributions to legislators who supported it," wrote members of the Animation Guild, a union that includes Disney employees.

At the company's March 9 annual meeting, Chapek said the company would take a public position in opposing the bill after all. Disney's CEO said he planned to meet soon with Florida Governor Ron DeSantis, a proponent of the legislation, and bring employees with him to share their concerns.

He also said Disney would contribute US$5 million to gay rights organisations, including the Human Rights Campaign in Washington.

Just as Chapek predicted, however, his comments were weaponised. The Human Rights Campaign said it wouldn't take Disney's money "until we see them build on their public commitment."

DeSantis, a Republican, spoke out against the company, asking why Disney doesn't do more for human rights in China. The state's policies, DeSantis said, are "going to be based on the best interests of Florida citizens, not on the musing of woke corporations."

On Friday, Chapek said the company would pause all political contributions in the state of Florida as it looks to create a lobbying effort that "better reflects our values." BLOOMBERG