In a no-win situation, Disney CEO Bob Chapek managed to anger people on both sides on Florida's Parental Rights in Education law.

Simone Del Rosario Business Correspondent

Will Disney CEO Bob Chapek’s Florida fumble cost him his job?

May 11, 2022

Simone Del Rosario Business Correspondent

By Simone Del Rosario (Business Correspondent), Dan Reardon (Video Editor)

After just two years on the job, Disney CEO Bob Chapek is already in the hot seat after stumbles over Florida’s controversial Parental Rights in Education law, dubbed by critics as the “Don’t Say Gay” legislation. Now, new reports indicate entertainment insiders are questioning whether Chapek can hold onto the Disney magic and his job when his contract expires in less than a year.

Chapek, who has been with the company since 1993, was given the keys to the Magic Kingdom in 2020. Mere weeks after becoming CEO, the magic stopped as the COVID-19 pandemic forced park closures, but he managed to cruise through COVID-19’s challenges and the company thrived in the streaming space. Then, things took a turn.

In March 2022, Chapek and Disney stayed silent over the controversial Florida bill working its way through the legislature, prompting outcry and staff walkouts. Within days, Chapek reversed course and Disney put out a statement opposing the bill, which prohibits classroom instruction on gender identity and sexual orientation for grades K-3.

“I know that many are upset that we did not speak out against the bill,” Chapek said during a shareholders meeting in March. “Now, we were opposed to the bill from the outset, but we chose not to take a public position on it because we thought we could be more effective working behind the scenes engaging directly with lawmakers…We stand with our LGBTQ+ community going forward.”

In what many considered to be a no-win situation, Chapek managed to anger people on both sides. For those against the bill, it was too late. For those in favor of the bill, they thought Disney should have stayed silent.

“They really put pressure on Mr. Chapek and Mr. Chapek flip flopped like a banked catfish,” Sen. John Kennedy (R-LA) said on Fox News.

“The fact that this was a difficult issue for Chapek to deal with really just makes me doubt his ability as a leader,” prominent investor Ross Gerber said.

Florida’s Republican Gov. Ron DeSantis doubled down on Chapek, fracturing an important relationship for Disney between the company and the state.

“For Disney to come out and put a statement and say that the bill should have never passed and that they are going to actively work to repeal it, I think, one, was fundamentally dishonest, but two, I think they crossed a line,” DeSantis said.

The state of Florida retaliated by stripping Disney of its special tax status, which allowed the park to operate as its own municipality. And Bob Chapek got a lesson in modern politics.

“You will have somebody mad at you no matter which way you respond. That’s just the way life is today and you can’t avoid it and you cannot ride the fence,” former Disney Resort executive Lee Cockerell said.

Chapek got off the fence and onto a global “listening tour” to try to quell internal frustration over his fumbling. But will it be enough to save his job? With DeSantis fundraising off the feud, the heat on Chapek is intensifying.

SIMONE DEL ROSARIO: HE WAS GIVEN THE KEYS TO THE MAGIC KINGDOM

NEWS CLIP: bob chapek will be the ceo of disney effective immediately.

SIMONE DEL ROSARIO: JUST WEEKS BEFORE THE MAGIC STOPPED.

NEWS CLIP: disneyland is closing down tomorrow to help limit the spread of coronavirus.

NEWS CLIP: this call by disney and the other theme parks that followed suit was a billion dollar decision.

SIMONE DEL ROSARIO: BUT AFTER CRUISING THROUGH THAT CRISIS – WILL IT BE STUMBLES TWO YEARS INTO HIS TENURE THAT DO BOB CHAPEK IN?

NEWS CLIP: today dozens of disney employees walked off the job.

CLAY TRAVIS, OUTKICK: i gotta tell you Disney has lost its mind. Bob Chapek, who is the current CEO, has really blown it.

SIMONE DEL ROSARIO: DISNEY CEO BOB CHAPEK – JUST ONE NAME YOU NEED TO KNOW.

BOB CHAPEK’S WALT DISNEY STORY STARTS ALL THE WAY BACK IN 1993.

HE WENT FROM HOME VIDEO – TO HEAD OF PARKS – BEFORE BEING NAMED DISNEY’S 7TH EVER CEO…STEPPING INTO FORMER CHIEF BOB IGER’S MICKEY MOUSE SIZED SHOES.

DISNEY CEO BOB CHAPEK: disruption and transformation are just inevitable in this business and it hits each one of our businesses a little bit differently but it’s inevitable that those businesses will be disrupted and it’s recognizing at that time when we’ll need to shift and that’s i think the art of the job.

SIMONE DEL ROSARIO: DESPITE COVID AND A SNAG WITH BLACK WIDOW ACTRESS SCARLETT JOHANSSON OVER HER CONTRACT, TWO YEARS IN, THINGS WERE LOOKING UP FOR CHAPEK.

NEWS CLIP: Disney beating profit and revenue expectations in its latest quarter.

SIMONE DEL ROSARIO: UNTIL HIS SILENCE OVER CONTROVERSIAL FLORIDA LEGISLATION RESTRICTING LGBTQ TOPICS IN SCHOOL SPOKE VOLUMES TO DISNEY STAFF AND SHAREHOLDERS.

DISNEY CEO BOB CHAPEK: I know that many are upset that we did not speak out against the bill.

NEWS CLIP: disney ceo bob chapek is reversing course today now speaking out against florida’s parental rights and education legislation dubbed by opponents as the don’t say gay bill.

SIMONE DEL ROSARIO: BUT FLIP FLOPS AND DISNEY NEVER DID MIX.

SEN. JOHN KENNEDY: they really put pressure on mr. chapek and mr. chapek flip flopped like a banked catfish.

SIMONE DEL ROSARIO: AND WITH BOTH SIDES OF THE ISSUE NOW MAD –

Ross Gerber: the fact that this was a difficult issue for chapek to deal with really just makes me doubt his ability as a leader.

SIMONE DEL ROSARIO: CHAPEK NEEDS SOME DISNEY MAGIC TO GET OUT OF THIS MESS.

GOV. RON DESANTIS: for disney to come out and put a statement and say that the bill should have never passed and that they are going to actively work to repeal it, i think one was fundamentally dishonest but two i think they crossed the line.

SIMONE DEL ROSARIO: FLORIDA RETALIATED BY STRIPPING DISNEY OF ITS SPECIAL TAX STATUS. AND BOB CHAPEK GOT A LESSON IN MODERN POLITICS.

LEE COCKERELL: you will have somebody mad at you no matter which way you respond that’s just the way life is today and you can’t avoid it and you cannot ride the fence 9:50

SIMONE DEL ROSARIO: OFF THE FENCE AND SQUARING OFF WITH FLORIDA’S GOVERNOR, EMBATTLED DISNEY CEO BOB CHAPEK IS JUST ONE NAME YOU NEED TO KNOW.