Disney exec ousted due to culture clash

Hollywood was shocked this week as The Walt Disney Co. fired one of its top executives, an industry veteran who was viewed as a likely successor to CEO Bob Chapek.

Peter Rice served as chairman of Disney General Entertainment Content (DGE), which creates original entertainment and news programming for the Burbank, CA-based company’s streaming platforms Disney+, Hulu and Star, and its cable and broadcast networks. After a seven-minute meeting on Wednesday, Chapek dismissed Rice due to a “clash of styles,” Bloomberg reported.

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The company culture at the entertainment juggernaut is heavily reliant on group thinking and collaborative decision-making, which Chapek has intensified since taking the helm in February 2020, one month before the COVID-19 pandemic began. According to Bloomberg, he has reorganized Disney so that major decisions are made not by the chairman of the TV business, but by another group of managers in charge of distribution.

In the fall of 2020, Chapek restructured operations and chain of command. He shifted the company’s formerly independent TV and film businesses into a new division, Disney Media and Entertainment Distribution, headed by Kareem Daniel.

According to Bloomberg, Rice accepted the new structure even though it was a stark contrast to how he operated. Breaking into the industry 35 years ago as a summer intern at Fox’s film division, Rice rose up the ranks to lead cable networks, Fox broadcasting and National Geographic. Led by Rupert Murdoch, the culture at Fox provided managers with autonomy.

Rice was viewed as a potential successor to Chapek, whose contract is set to expire early next year, according to The Hollywood Reporter. However, Disney’s board of directors has supported Chapek’s decision to remove Rice and hand over the reins of DGE to Dana Walden, another Fox alum.

“The strength of The Walt Disney Company’s businesses coming out of the pandemic is a testament to Bob’s leadership and vision for the company’s future. In this important time of business growth and transformation, we are committed to keeping Disney on the successful path it is on today, and Bob and his leadership team have the support and confidence of the Board,” said Susan Arnold, chair of the board.

The board’s support of Chapek is surprising considering he came under fire earlier this year for Florida’s “Don’t Say Gay” bill, which has since been signed into law by Governor Ron DeSantis.

In an initial email to staff, Chapek said that although Disney has pledged support to the LGBTQ+ community, the company wouldn’t be getting involved in the discourse surrounding the controversial legislation, which bans educators from discussions about sexual orientation and gender identity in classrooms. “I do not want anyone to mistake a lack of statement for a lack of support. We all share the same goal of a more tolerant, respectful world. Where we may differ is in the tactics to get there,” he wrote.

A week later, Chapek apologized and admitted that he “missed the mark” after receiving backlash from staff. "Speaking to you, reading your messages, and meeting with you have helped me better understand how painful our silence was. It is clear that this is not just an issue about a bill in Florida, but instead yet another challenge to basic human rights," said Chapek in a message to employees. "You needed me to be a stronger ally in the fight for equal rights and I let you down. I am sorry."

As part of Chapek's first steps in opposing the bill, he said that the company is "pausing all political donations in the state of Florida pending this review." That came on the heels of an Orlando Sentinel report, which revealed that Disney has donated money to every single sponsor and co-sponsor of the bill.

Despite Chapek’s apology, Disney employees staged a series of protests and walkouts in March.