Home Disney News Disney CEO Chapek’s New Corporate Structure creates confusion and frustration

Disney CEO Chapek’s New Corporate Structure creates confusion and frustration

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Disney CEO Chapek's New Corporate Structure creates confusion and frustration
Credit: orange County Register

What changes has Bob Chapek made to the Walt Disney Company at the executive level since taking over? Read on for details.

There’s poor timing and then there’s taking over a multibillion dollar entertainment company a month before a pandemic shuts the world down. Let’s take a look at how Disney CEO Bob Chapek has handled the corporate structure.

Disney CEO, Bob Chapek

We have covered Bob Chapek before, from his fancy new home, to meeting him on Disneyland reopening day.

In an Op-ed last year, I (Rebecca) argued that Chapek is the CEO Disney needs to stay afloat in the throes of the pandemic.

Please do not conflate thinking he is the right CEO with thinking he’s my favorite CEO.

I’m team Josh D’amaro for next CEO!

However, he has a reputation for making money for the company and a background in home entertainment, which has been a major focus this last year.

Corporate Structural Changes

A recent article in Variety details some of the reorganization at the Walt Disney Company since Chapek assumed the role of CEO last February. The company has seen a dramatic change of leadership styles. Iger was more collaborative, and Chapek delegates more directly.

One change of note is the elevation of Chapek ally Kareem Daniel to Chairman of Disney Media and Entertainment Distribution. According to Variety, “It’s a very different place and a very different organization,” a Disney insider said. “Kareem has huge authority and power.”

With Disney’s shift toward streaming in services like Disney+, the company has made dramatic shifts in the leadership style and structure within the organization. The restructuring has taken some power away from executives who oversee the production of Disney content in favor of those who distribute it.

Some in the industry criticized the new structure as being convoluted and adding an additional executive layer to getting projects made. Some top executives have apparently become frustrated with losing some of their decision making freedom.

Various Disney Divisions

In the corporate world, Profit and Loss (or P&L) is one way executives judge an individual’s value to the company.

Under the new structure, one team of executives is spending money to create content, while another team of executives claims all the profit. The ones actually creating the content will not directly see the benefit of their work, while the ones distributing the product will be given rewards.

Disney Executive Gets $11 Million Annual Award and Contract Extension
Credit: The Walt Disney Company

It will be interesting to see how Disney executives prove their value with this change.

This afternoon, we will cover the quarterly investment call and any announcements made! What do you hope to hear about? Let us know in the comments on Facebook and in our Facebook group!

-Rebecca W Davis




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4 COMMENTS

  1. I agree, whole heartedly!!! My family and I have had a history that goes back to the beginning of the parks and through 5 generations. Just know that if all the passes are cut and all we get is a reward system. We will sadly be spending our money elsewhere.

  2. Chapek has only one goal, and he cares NOTHING for the nostalgic Disney fan who passes their love of the movies, the parks, and Walt’s dream down to their families – creating new Disney diehards. As a former out of state annual pass holder, the park I’ve loved is disappearing before my eyes. He just doesn’t get it. I want to climb up on something tall and say “listen to us before it is too late”. I understand growth, but what you are creating feels dirty, and I (as the loyal guest in the park saying “take all my money”) feel like those in charge just keep tipping the scale to see how much they can take away while raising prices at breakneck speed. I love you, Disney, but let’s be honest. Without the Peter Pan lovers – the true diehards who are willing to squint their eyes and ignore the carpeted evacuation route and bad neon glow paint job, that pirate ship isn’t flying. No more Sorcerer’s of the Magic Kingdom, magic hours, free magic bands for resort guests. Yuck. $500 a night for 30 extra minutes going through security in the morning hardly feels like a perk. Shame on you, Chapek. You can blame Covid all you want, but the blame is squarely on your shoulders.

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