Ins and outs of Bob Iger - Just one man's take

[DVC-Landbaron]

So we were talking about Ei$ner taking a more hands-on approach. And the subject of Robert Iger came up. And the Captain took both of these things as a good sign. I personally felt that ‘more’ hands on by Ei$ner was a bad thing, but I didn’t know squat about Iger. So I went to another Disney site and contacted their resident sage of Disney (kind of like their Another Voice) and he responded. Below is his response. The quotes are my questions to him. Now, this is just one man’s take on the guy and the situation. Very subjective, I realize. And who knows, he may be full of it. But I have a GREAT respect for his views, as I do Another Voice. He shows remarkable insight into all things Disney and has an affinity for all things Walt (before I got my own quote book, he provided them for me!!) Take it for what it’s worth. I started with a simple question. “What do you know about Bob Iger?”

You want to know about Bob "Recession Proof" Iger?? The reason that I call him that is that back in April he made some statements to the press to the effect that Disney's efforts in "cost control" and the layoffs were aimed at "recession proofing" the company. It got quite a laugh in the finance circles. And most people just brushed off the comment realizing that no company is recession proof. But to me, it was significant - as it shows what his focus is towards running the company. You have Eisner on the one hand claiming that the cuts were to boost profits, and you have Iger on the other hand claiming that the cuts are to "Recession Proof" the company. It might lead one to believe that the cost cuts were started just because they felt that they had to do something... anything....

Lets dig into who Iger is, and where he comes from... After all, how does one get to be President and Chief Operating Officer of Uncle Walt's company? Iger started his career as a TV Weatherman in Ithaca, New York. Starting in 1974 Iger began to climb the corporate ladder at Capital Cities/ABC - holding a series of positions with increasing responsibility until becoming president of ABC in 1993. (His big claim to fame at ABC was of course the Rosanne show, and the whole Ellen controversy) Iger is married to former model and CNN anchor Willow Bay. (He is 50 and she's 37) They have a son together who is I think 3? Iger has a reputation for being disciplined - getting up each day at 4:30am - working out, reading at least four or five newspapers - and then trying to get into the office by 7. Iger did well last year earning about $9,219,743 in over all compensation for 2000. In addition he has about 30,000 shares of Disney Stock.

One of the more interesting things about Iger is that he happens to be good friends with Jeffery Katzenberg. Indeed Iger set up a 100 million infusion of funds to help Katzenberg found Dreamworks after he left Disney. Of course this was back when Cap Cities still owned ABC – but it makes you wonder if the knowledge of this doesn’t eat at Eisner a little bit - especially since we know of Eisner's rather strong feelings for Katzenberg. (A friend of my enemy is my enemy? Perhaps?)

In any event - Iger was finally appointed a little over a year and one half ago (Jan 24, 2000) to run the day-to-day operations of Disney. His appointment was more or less pressured on Eisner because even then, the company was seen to be drifting by Wall Street, and there was no clear successor to Eisner. (Which gave the appearance that if Eisner's already bad heart were to give out, that chaos would ensue at the executive levels of Disney). In addition the constant flood of Execs leaving Disney didn’t give Wall Street the Warm and Fuzzy about the company that they would have liked. Iger was originally supposed to focus on fixing licensing and merchandising profits, and reigning in the red ink from Disney's Internet mess (IE GO.com). Let us not forget that Eisner not only Appointed Iger as the number 2 man, but also reorganized the executive committee and gave promotions to such people as Disney CFO Thomas Staggs, and CSO Peter Murphy. Iger is by no means a one-man show. And he is also by no means the Heir Apparent.

So how has his performance been this last year? Well.. how are the licensing and merchandising profits doing? Pretty flat the last time I checked. (Can you say Disney Store Redesign?? lol) Go.com was fixed by writing it off totally... So what does Eisner have Iger doing with his time? It would seem that Iger more or less takes care of the horse work for Eisner. Indeed he was the point man on the Time Warner/Aol Merger - flying often to Europe to try and put a hold on it. (Failing). He was the elected point man on the "Black Hoe" Incident - and was more or less effective at putting the squash on that PR nightmare. More recently Iger has been leading the other studios with Negotiations for a New Contract with the Writers Guild of America. (Representing not only Disney in the talks, but also his old friend Katzenberg - which I am sure must please Eisner to no end.)

My own take on Iger is that he not really close enough to the theme parks to really understand the company well. He is too busy with all of these special projects that Eisner is always sending him on. I really don't see Iger as any "Walt Like" talent. I would say, to me, he seems to be more in the mold of Eisner then Walt.

I found this NY Times article recently and some other boards seem to take it as an indication that Eisner will get more personally involved.

More so than he already is? I think this whole line is a crock. To me it looks like Eisner is trying to hang the Atlantis/Pearl Harbor thing on X-studio head Peter Schneider. (As Peter knew would happen, I am sure). It’s a way for Eisner to say… well… It was his fault. I wasn’t that Involved. But I am going to be now.

I hate to ask this question - but... If Iger was running the mop up operations, and Schneider was running the studio - just what was Eisner doing with his time? Spending all of his time making sure that DCA was going to be a smash hit?? LOL!!!! It’s too funny - and flies in the face of logic when you look at it.

Even more micromanaging. Some seem to think this is a good thing, reporting that when Wells was alive, Wells was the "Roy" that allowed Eisner to be the "Walt".

I have heard this said before. Wells was good at keeping Eisner from destroying things. That was about it. I do think that Wells had a better sense of just what Disney was supposed to be - but he was no Roy.

They argue that since his death Eisner wearing both hats is the reason he lost focus. (Remember, I'm just the messenger, don't kill me!!)

Kind of yes. I don't think that Eisner "Lost Focus" per say – no rather I look at it as Eisner was free to do what he wanted, with out anyone to check him, or stop his actions. We all see the result. Also don't forget that the whole Euro Disney mess is really the key to understanding what transformed Eisner. He was never the same after it. He gave up on risk taking - and it is also why we have Hong Kong Disneyland Lite... instead of real 21st century MK Park.

But also in the article is Robert A. Iger. Some of these rose-colored posters also believe that Eisner is grooming this guy to be the future top mouse. Anything to it? And what details do you have on him?

Well, Eisner is due to retire in 2006. That’s a long way from > now to figure out who will run Disney. (Eisner is 60 now - and Iger is 10 years his junior.) I think it is too early to say - but my guess would be that Iger will not last until 2006. Iger is too close to Katzenberg, and that is going to finally do him in with Eisner. Unless something serious happens I don't see Eisner going before '06 either. You can count out Roy Jr. as he is 70 and is mostly retired now anyway. I would really watch Thomas Staggs. He's young (39) and is king of the Accountneers. In my mind, unless Disney changes - he would have a good shot at the top job, should Eisner Exit. (Not that it would make me happy!!!! - just throwing out my best guess).

Iger recession-proof article

A quote from the article above...

Disney President Robert Iger said in an interview Tuesday that the results reflect early successes in Disney executives' attempts to recession-proof the company. Despite the soft economy, Iger predicts the company will do well this year.

"We're more diverse," Iger explained. "And we've been realizing the positive results of a fairly aggressive cost-management program in the company.”

 

[Sarangel]

Thanks for a great analysis of one of the Names we all see on the news. It's nice to see some detail on him other than his quotes in news articles.

Sarangel

 

[larworth]

Interesting material.

As I've already stated (other post) I think this line about being distracted is just that a line. I'm sure he's been fully aware and supportive of everything that has been going on. Instead of distracted I hope he really means disoriented. However, the CEO handbook strongly advises against admitting you have made any type of actual judgement error unless things are really desperate.

I hope what he's really saying is he sees the pendulum has swung too far towards value management. There were some creative excesses that needed to be wrung out, but we have squeezed way too hard and lost touch with the creative engine that drives the company (???).


I know even less about Skaags, but he doesn't seem a likely CEO choice to me. He has been a big driver of ROI decision making within the company, which I'm sure the street likes, but I still think they will want to see a entertainment/media veteran in the job, and not a strictly financial guy.

Iger fits that bill, and he also comes from the largest division in the company. He seems to have the background, and if the Katzenberg tie was a such a big factor would he have been promoted to where he is today? Gee, maybe when Eisner steps down he might even pitch how he could broker some type of creative mend with the SKG boys, given his friendship.

Of course maybe he is just not CEO material and we'll get another outsider. Whoever, we can be sure that they will have no real experience with the park side of the business. Isn't it great being a media giant.

Another reference to the scarring effect of Euro Disney.
This obviously had a big impact on their thinking and approach. If their conservatism was an overreaction to DLP, maybe we can hope they will conversely overreact to the DCA mess.

 

[DisDuck]

Ok folks, twice now I have read about HK Disney Lite. Will someone explain the relationship between Hong Kong and Disney and what that has to do with Eisner, Iger and Euro-Disney.

When the deal about HK was announced all the reports indicated that Disney's investment was small, that most of the money was coming from HK. So is HK owned by Disney or the name licensed like Tokyo. If licensed and most money from HK, they can build how many rides and which ones they want. If too little then go argue with the HK company not Disney.

 

[HBK]

but I am pretty sure I read elsewhere that Disney owns the Hong Kong Property. OLC owns the tokyo property and licenses the name.

Anyone else?

P.S. Even if it's a license, shouldn't Disney have some type of safeguards as to how it's name is used? Shouldn't there be some type of minimum requirements for rides, shows, standards, etc? If not, then how do you protect the brand name recognition & loyalty?