The company’s shares climbed nearly 10 percent to an opening price of around $100 on the New York Stock Exchange. The positive stock performance comes after Disney announced Sunday that Iger would return to lead the company.
Iger, 71, had handpicked Chapek, 62, to be his successor when he stepped down from his position at Disney in early 2020. Iger headed Disney for 15 years, leaving just before the coronavirus pandemic hit the company hard by causing the closure of its theme parks and forcing major films to be released on streaming service Disney+ rather than in theaters.
Chapek’s contract was renewed by Disney in June, but he came under fire after a recent quarterly earnings report didn’t meet the company’s profit expectations, as well as a forecast that Disney+’s growth was projected to dwindle.
The news that Iger would return “effective immediately” came from a statement from Susan Arnold, chairman of Disney’s board.
“We thank Bob Chapek for his service to Disney over his long career, including navigating the company through the unprecedented challenges of the pandemic,” Arnold said. “The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period.”
Disney’s share price was recently reported to be down 43 percent from its March 2021 high, and earlier this month the company had its worst day on the stock market in 21 years.
For now, Iger’s role as CEO is being described as a temporary one.
In a statement from its board of directors, Disney said Iger “has agreed to serve as Disney’s CEO for two years, with a mandate from the Board to set the strategic direction for renewed growth and to work closely with the Board in developing a successor to lead the Company at the completion of his term.”
In the company statement, Iger said, “I am extremely optimistic for the future of this great company and thrilled to be asked by the Board to return as its CEO.
“Disney and its incomparable brands and franchises hold a special place in the hearts of so many people around the globe—most especially in the hearts of our employees, whose dedication to this company and its mission is an inspiration,” he continued. “I am deeply honored to be asked to again lead this remarkable team, with a clear mission focused on creative excellence to inspire generations through unrivaled, bold storytelling.”
Newsweek reached out to Disney for further comment.
Update 11/21/22, 11:25 a.m. ET: This story has been updated to include more background and information.
