Disney’s board upheld Bob Chapek, the embarrassed CEO, despite the line that caused damage to the handling of Florida’s so-called “Don’t Say Gay” bill.
Mr Chapek’s contract was due to expire in February next year, but has been renewed for another three years, the company said Tuesday.
It’s Mr. Chapek’s after a series of complaints, including a devastating political line in Florida, a public dispute between Disney and actress Scarlett Johansson, and the recent disappointing box office record of Toy Story’s spin-off Lightyear. It follows speculation about the future.
Chapek became the seventh boss in Disney’s nearly 100-year history a few weeks before the theme park, and much of the content production was stopped for Covid.
He enjoyed his early success with the launch of the rapidly growing Disney + streaming service during the pandemic.
However, the company’s share price has fallen nearly 39% since the beginning of the year after damaging the PR line in Florida.
Disney World was recently stripped of its special tax status in Florida. The company was after a clash with Republican Governor Ron DeSantis on LGBT policies.
Disney publicly condemned the governor’s new education method and named it the “Don’t Say Gay” bill. The bill prohibits discussions about sexual orientation and gender identity in elementary school and limits it to older students. Disney’s intervention under internal pressure from staff was widely regarded as mistreated.
The entertainment giant was also accused by Johanson, who accused the company of violating her contract when releasing the superhero movie Black Widow on Disney + while being shown in a movie theater. Both parties later settled the dispute.
Both cases were seen as damaging Mr. Chapek’s credibility as Chief Executive Officer.
Recently, Lightyear, a new Toy Story installation, has been disappointed with box office revenue. The animation set the worst weekly slump in Pixar movies after earning only $ 152 million in the second week.
Disney Chairman Susan Arnold said:
“The Board is committed to leading Disney to today’s success, and Bob’s leadership is the key to achieving that goal.”
Chapek recently fired Peter Rice, the Group’s chief executive officer. Peter Rice was touted as a potential successor to the CEO role.