If extending Bob Chapek’s tenure as Disney boss was designed to reassure markets, the tepid share price reaction suggests few, if any investors, were toasting the news.
On Wednesday, Disney shares were indifferent at best to the news its seemingly unpopular chief executive would be sticking around for three more years.
And instead of a cause of celebration, investors were still left battered and bruised by the 39% drop in the share price this year.
It comes as Disney remains somewhat entrenched in America’s polarising politics, caught up in the so-called “don’t say gay” furore in its adopted home of Florida.
Though for shareholders the bigger concern will more likely be the dismantling of Walt’s preferential tax status for Disney World and the lacklustre showing in recent financial results.
One Twitter user expressed the concern of many avid Disney fans, calling Chapek a "double agent working for Universal."
But why are shareholders and fans so berated?
Bob Chapek’s start to Disney
Chapek was appointed Disney’s seventh boss, in its 99-year history - just a month before the world was plunged into a global pandemic.
He got off to a bad start, albeit not his fault, with the company having to shut its theme parks and much of its content production just weeks after his appointment in February 2020.
Although he later did have some joy, with the success of the Disney+ streaming service, which saw subscription numbers skyrocket during Covid-19.
So, what’s happened at Disney in the last year?
One of the most notable and damaging occurrences to Disney was the row over Chapek’s handling of the “Don’t Say Gay” bill in April.
The multinational company was deprived of its special Florida tax status following a clash with Republican governor Ron DeSantis over his LGBTQ plans.
Disney publicly criticised the so-called “Don’t Say Gay” bill, which effectively prevents sexual orientation and gender discussions in primary schools.
Unsurprisingly, the entertainment giant’s intervention was deemed as mismanaged by many.
Disney was also sued by actress Scarlett Johansson in the latter months of last year after she blamed the company for breaching her contract.
She was unhappy that the superhero film Black Widow was released on Disney+ while still being shown in cinemas around the world. The dispute was later settled.
Chapek’s woes mounted further earlier this month, with the disappointing release of the new Toy Story instalment Lightyear.
It set the rather unwanted record for the worst week-on-week slump for a Pixar film following its mere US$152mln sales in its second week of release.
The CEO recently sacked Disney’s top television executive, who had been backed by many analysts to succeed Chapek in his role.
Although different to what investors and outsiders may think, the Disney board seemed to remain happy with Chapek.
Susan Arnold, Disney chairperson, said: “Disney was dealt a tough hand by the pandemic, yet with Bob at the helm, our businesses — from parks to streaming — not only weathered the storm but emerged in a position of strength.
“The board is committed to keeping Disney on the successful path it is on today and Bob’s leadership is key to achieving that goal.”
The question on many people’s mind is: Was Bob Chapek’s contract renewed so that Disney could sack the CEO at a more convenient time?
But that’s all speculation, for now, and only time will tell.