- In today’s CEO Daily: Diane Brady breaks down Disney’s CEO transition.
- The big story: Gen Z moves on from TikTok.
- The markets: How low will Bitcoin go?
- Plus: All the news and watercooler chat from Fortune.
Good morning. Every CEO has three basic tasks: Set the strategy and vision of their company, hire the leadership team to execute on that, and create the conditions to successfully replace themself.
That last part can be awfully hard to do. Power is intoxicating. Most of us like to think we’re irreplaceable. And good intentions don’t always lead to good practices.
So let’s look at how a veteran is handling that task. Disney CEO Bob Iger announced this week that he’s stepping down nine months before his contract ends, though he’ll stay on through the end of the year as a senior advisor. The goal is to give successor Josh D’Amaro some time to settle and then a clean break to set his own path.
That’s different from the last time Iger stepped down in early 2020, an exit that had already been delayed four times. He stayed on as executive chairman for two years, then cut all ties, only to return as CEO in November 2022 after Bob Chapek was suddenly ousted. In addition to raising questions about the board, at least from me, the drama reinforced the myth that, when it comes to running Disney, as they say in the movie Highlander (now streaming everywhere but Iger’s channels), there can be only one. So what are the takeaways this time?
Beware the myth of genius – Bob Iger had a great track record at Disney and certainly cut costs and refocused the company this time around. That said, its stock has underperformed the market and top-line growth is modest. History is rife with examples of celebrated CEOs who stumbled the second time around, from Procter & Gamble’s A.G. Lafley and Twitter’s Jack Dorsey to Howard Schultz at Starbucks and Ken Lay’s disastrous return to Enron—the last of which was an epic disaster for other reasons. Raise your hand if you think Jack Welch could have maintained GE’s momentum if he’d stayed on the job.
Shut the door on your way out – Having the old boss stay on as an executive chairman can be a Faustian bargain for the new one. They’re used to calling the shots, may wax poetic about how they would have handled a situation, and can create conflict where clarity is needed. Wise move on Disney’s part to give the new guy a clean slate. That $45 million payday, on the other hand, seems pretty lofty.
One size doesn’t fit all – There are times when a different governance structure may be justified. With the growing complexity of the external environment, from geopolitics to AI’s impact on operations, many CEOs are feeling forced to act more like chief operating officers who have to steer the ship through the storm. That creates a more compelling case for co-CEO roles or a more external/vision-setting executive chairman. The world is a complicated place. But Iger, or his board, recognizes that his most important job now is to help Disney’s next CEO succeed.
Contact CEO Daily via Diane Brady at diane.brady@fortune.com
Top leadership news
Gen Z moves from TikTok to UpScrolled
Gen Z is flocking to social media platform UpScrolled in revolt against the takeover of TikTok’s U.S. operations—and its algorithms. UpScrolled is run by an alum of Oracle, the company that now holds a major stake in TikTok’s U.S. operations, and promises a more transparent approach to moderation and personalization.
Vance touts critical minerals
Vice President JD Vance said this week that critical minerals have joined oil as one of the “realer” resources underpinning the economy. Speaking to an international group of 55 ministers, Vance stressed that critical minerals could be more impactful than the digital investments currently dominating the U.S. economy.
AI companies invest in PR
AI companies are forking over salaries as high as $400,000 for comms hires as investors grow skeptical about the technology’s value and consumers worry about AI-induced layoffs, Business Insider first reported. Recent Pew research found that half of Americans claim they’re more concerned about the technology than excited about it.
The markets
S&P 500 futures were up 0.3% this morning. The last session closed down 1.23%. STOXX Europe 600 was up 0.1% in early trading. The U.K.’s FTSE 100 was down 0.04% in early trading. Japan’s Nikkei 225 was up 0.81%. China’s CSI 300 was down 0.57%. The South Korea KOSPI was down 1.44%. India’s NIFTY 50 was up 0.20%. Bitcoin declined to $66K.
Around the watercooler
OpenAI’s new model leaps ahead in coding capabilities—but raises unprecedented cybersecurity risks by Sharon Goldman
Rocket CEO says U.S. mortgage industry is a ‘tale of two cities.’ His booming business shows a broader reality for American homebuyers by Sydney Lake
Crypto market in free fall as Bitcoin plunges below $70,000 while shares of Coinbase and Circle tumble by Carlos Garcia
Forget a degree—$30 billion defense startup Anduril will fast-track your job application if you can win its AI drone-flying contest by Preston Fore
Trump is giving the U.S. economy a $65 billion tax-refund shot in the arm, mostly for higher-income people, BofA says by Nick Lichtenberg
CEO Daily is compiled and edited by Joey Abrams, Claire Zillman and Lee Clifford.
