Incoming Disney CEO Robert Iger faces what could be be one of the most difficult tasks in all of Corporate America -- replacing a legendary chief executive who he served as lieutenant for many years and who may have even once questioned his competency for the job.
Walt Disney Co. named Iger as its new chief executive on Sunday, effective Sept. 30. He will replace the iconic Michael Eisner, who will end his 20-year-plus term earlier than expected.
Eisner said Sunday he would not seek the chairmanship of Disney, adding he would not seek a fresh board term.
Iger, 54, an urbane and polished executive who is more than comfortable with the spotlight that comes with running a major company, got his start as a TV weatherman, eventually joining ABC and working his way through the ranks to the top of the network before Disney bought it in the 1990s.
To many industry observers, the ascendance of the loyal Iger was preordained -- he was seen all along as Eisner’s ”preferred” candidate to run the entertainment giant, whose vast operations include film studios, theme parks and resorts, and the ABC and ESPN television networks.
But even as Iger prepared for what looked to be an inevitable rise to the top at Disney, he had to endure the public airing of unflattering comments said to have been made about him by Eisner in past.
“DisneyWar,” a recent book about the company and its period of difficulties from Pulitzer Prize-winning journalist James Stewart, cast Iger as lacking creativity and included a litany of incidents where Eisner expressed doubts about Iger.
Recovery
It was not that long ago that Disney was on the ropes --its financial results were unimpressive, its ABC network was mired in a prolonged slump and the company faced the prospect of being taken over by cable giant Comcast Corp.
But over the last year or so, Disney turned its situation around, posting impressive growth figures and benefiting from the breakout success of the ABC dramas “Desperate Housewives” and “Lost.”
Disney officials Sunday said Iger was the man who could keep the company on the right track.
“The board concluded that Bob Iger was the best qualified individual to lead the company into the future,” Disney Chairman George Mitchell said on a conference call. “We believe that Bob’s accomplishments and vision make him the best choice to lead the company going forward.”
Investors said Iger brings certain personality traits to the negotiating table that Eisner may lack.
“There’s a couple of things that Bob might be able to do better than Michael. The first of course is the Pixar negotiations,” said Larry Haverty, a portfolio manager at Gabelli & Co., referring to the fractured relationship between Disney and animation powerhouse Pixar.
Worked his way up
Iger started at ABC in 1974 as a studio supervisor in New York and worked his way through the ranks to president of ABC Television Network Group in 1993. Disney’s purchase of Capital Cities/ABC in 1996 brought him to the company.
In January 2000, he became president of Disney, filling a role that was surrounded by controversy and tragedy.
His predecessor, Michael Ovitz, left the company after barely more than a year with a severance package that is still the subject of legal wrangling. Before Ovitz was Eisner confidant Frank Wells, who died in a 1994 helicopter crash.
In recent months, Iger had been increasing his profile by speaking at investor conferences and making other public appearances.
“Obviously if I was offered the job, it’s a job I would love to have,” he told Reuters in August 2004. “I’m not suggesting that I have a campaign trail of any kind.”
He also said at the time he was concentrating on the job he presently has.
Iger is married to CNN news anchor Willow Bay and is the father of two daughters and two sons.
