Disney's Different... and That's What Makes Replacing Iger So Hard

Disney threw its fans for a loop this week when the company announced that presumed CEO-in-waiting Tom Staggs would be leaving the company . Staggs recently won a promotion from head of Disney's theme park division to become CEO Bob Iger's number-two, as Chief Operating Officer. But Staggs apparently couldn't hold the support of Disney's board — or of Iger, according to a New York Times report . Faced with a show of no confidence from his bosses, Staggs had no choice but to walk.

So it seems that Bob Iger's successor as Disney's CEO will be... Bob Iger. At least for the time being. Iger's promised to retire before, and he's backed off that before, too. With Disney's amazing recent success in films, theme parks, and acquisitions, there's no business case for Iger leaving the company anytime soon.

But no one lives forever. And, given Iger's reported interest in politics and sports, it's conceivable that Iger won't want to keep running Disney for the rest of his life, either. What then?

Business reporters have coughed up a predictable list of potential CEO candidates from other entertainment and communication companies: former News Corp. chief Peter Chernin, CBS chief Leslie Moonves, Facebook CEO (and Disney board member) Sheryl Sandberg. But Disney is different. Sure, it's a movie studio and TV network. Yes, it owns publishing and production businesses. But Disney's heart is animation — whose production can't always be managed the same way as live-action work. And Disney's traditional cash cow is its theme parks — whose management is totally foreign to executives with no experience in the travel and hospitality industries.

Staggs seemed a perfect candidate to replace Iger because he's complemented his experience in television management with a generally well-received stint running Disney's theme parks. He learned this side of Disney's business, and theme park fans could look forward to Staggs' term as Disney CEO with some reassurance that he at least had a clue as to what running the parks demanded.

If Disney is to look outside of the company for its next CEO, it's unlikely that the company will find someone whose experience lines up with the company's needed as well as Staggs' did. When Disney looked outside the company to hire Michael Eisner in the early 1980s, Disney was very different. The company was fending off corporate raiders who wanted to break it up. Disney hadn't bought ABC yet. And its theme parks, while successful, were hardly the industry behemoths that they are today.

In fact, Eisner's success in building Disney, continued and expanded by his protege Iger, may have made it nearly impossible for Disney to look outside for a CEO, like Eisner, today.

"Nearly," though. There is one high-level executive out there whose experience does match Disney's needs. Someone who has run television networks and retail stores, overseen a movie studio and run theme parks. Someone who even worked for Disney in the past.

So who is this? Some Disney fans aren't going to like this answer, but here goes.

It's Steve Burke... of NBCUniversal.

As different as Disney is, it's not unique. Disney's archrival, NBCUniversal, nearly mirrors Disney in its business interests: movies, television, production, theme parks. No, NBCU doesn't have a cruise line or a big retail chain, but Steve Burke ran the Disney Stores when he worked for The Mouse, so that's not an issue. If Disney's board wants to look outside the company for a leader, it would make sense to start its search with the company that most looks like Disney — NBCUniversal.

Of course, that begs the question — if Burke were to be lured by Disney (and given his history with the company, that might require more cash than even Mossack Fonseca could hide), who would replace Burke at NBCUniversal?

Well, I hear that Tom Staggs is looking for a gig....

Replies (25)

This article has been archived and is no longer accepting comments.