WALT Disney Co. said Tom Staggs is stepping down as chief operating officer, a move that muddies succession plans at the world's largest entertainment company.
Staggs, 55, will remain employed by the company in the role of special adviser to Chief Executive Officer Robert A.Iger through the current fiscal year ending in September, Burbank, California-based Disney said Monday in a statement. No reason was given for his departure.
Staggs was widely seen as the likely successor to Iger, whose contract runs through June 2018. Yet he had difficulty convincing some board members he was the right person to take over, according to a person with knowledge of the matter. He and Disney decided to part ways, said the person, who asked not to be identified discussing a personnel matter.
"It's shocking," said Laura Martin, an analyst at Needham & Co. "Tom was Wall Street's fair-haired boy. The market is going to be unhappy about this."
Disney shares fell as much as 1.8 percent to $96.90 in extended trading afterthe announcement. They lost 0.4 percent to $98.68 at the close in New York andhave dropped 6.1 percent this year.
A 26-year Disney veteran, Staggs rose through the ranks in a career that started in strategic planning before reaching the No. 2 spot. Disney said its board will broaden the scope of the succession planning process to identify a slate of candidates. Staggs didn't respond to a request for comment.
"Tom has been a great friend and trusted colleague for more than 20 years," Iger said in the statement. "He's made important contributions to this company, earning wide respect across the organization for his achievements and personal integrity."
Staggs, who previously led the company's parks and resorts division, became chief operating officer in February 2015, winning a two-person race for the job with former Chief Financial Officer Jay Rasulo. Another possible Iger successor, former TV division co-chair Anne Sweeney, left in January 2015.
The departure of Staggs means the world's largest entertainment company will have to start from scratch to find a new heir to Iger. An outsider is most likely, according to analyst Martin.
"Everyone in contention has left," she said. Staggs's exit "adds risk to the Disney strategy. Wall Street doesn't like uncertainty."
With the exception of former CEO Michael Eisner, Disney has most often been run by executives who worked their way up inside the company. Iger, 65, already has had his expected retirement date postponed.
Disney, like all media companies, has seen its shares tumble as investors worry about the loss of conventional TV viewers to Internet services like Netflix Inc. and Hulu LLC, in which Disney has a one-third stake.
Disney triggered a rout in media stocks in August 2015, when the company said on an earnings call that profit at the company's ESPN sports network wouldn't grow as quickly as projected because of viewer losses.
The parks business overseen by Staggs, meanwhile, has continued to flourish as the company approaches the June opening of its Shanghai resort, the company's biggest international investment. Profit at the parks increased 14 percent last year to $3.03 billion while revenue grew 7 percent to $16.2 billion.
Disney's movie business has also soared with hits like the new "Star Wars" film and a series of animated and live-action pictures, including superhero features based on Marvel comics.
The Washington Post
Tue Apr 05 2016
Walt Disney Parks and Resorts chairman Tom Staggs speaks to the press in Hong Kong during the unveiling of the new "Mystic Point" attraction at the city's Disneyland on April 18, 2013. - AFP Photo/Aaron Tam
Kerajaan cadang perkenal pembiayaan swasta
Kerajaan menyasarkan untuk memperkenalkan pembiayaan swasta alternatif bagi memastikan kemampanan kewangan program sektor air, sekali gus mengurangkan kebergantungan pada perbelanjaan kerajaan dan mengukuhkan daya tahan.
Saya tak fitnah Guan Eng, cuma jelaskan siasatan SPRM - Muhyiddin
Presiden Bersatu Tan Sri Muhyiddin Yassin memberitahu Mahkamah Tinggi Kuala Lumpur hari ini bahawa beliau tidak memfitnah Lim Guan Eng berhubung isu pengecualian cukai terhadap Yayasan Albukhary
KPT alu-alukan dapatan, cadangan PAC - Zambry
Ini termasuklah cadangan pelaksanaan Garis Panduan Pelaburan dan Pembiayaan oleh Universiti Awam 2024 kepada anak-anak syarikat di bawah seliaan Kementerian Pendidikan Tinggi (KPT).
Lebih 340,000 syarikat buat transaksi serah simpan maklumat pemunyaan benefisial
Sebanyak 340,637 syarikat telah membuat transaksi serah simpan maklumat pemunyaan benefisial (beneficial ownership) bagi tempoh 1 April hingga 14 Julai lepas.
Polis tunggu laporan makmal tentukan punca kematian Nur Farah Kartini
Polis sedang menunggu laporan makmal bagi menentukan punca kematian berhubung kes pembunuhan bekas penuntut Universiti Pendidikan Sultan Idris, Nur Farah Kartini Abdullah.
Mahkamah Persekutuan kekal hukuman mati ke atas bapa
Mahkamah Persekutuan di sini hari ini mengekalkan hukuman gantung sampai mati terhadap seorang bapa yang membunuh anak tiri lelakinya yang berusia enam tahun, 13 tahun lepas.
Keluarga mohon henti keluar kenyataan guris hati
Keluarga Nur Farah Kartini Abdullah yang ditemukan mati di sebuah ladang kelapa sawit di Kampung Sri Kledang, Hulu Selangor petang Isnin memohon pihak media dan orang ramai berhenti mengeluarkan kenyataan yang boleh mengguris hati keluarga.
Enam ditemukan maut di sebuah hotel di Bangkok
Enam orang ditemukan maut di sebuah hotel di Bangkok, Thailand pada Selasa.
Polis Thailand dalam satu kenyataan memaklumkan, pihaknya menerima panggilan kecemasan daripada kakitangan Hotel Grand Hyatt Erawan pada jam 5.30 petang yang memaklumkan mengenai penemuan mayat itu.
Jelas kenyataan itu lagi, kesemua mangsa merupakan warga asing.
Polis Thailand dalam satu kenyataan memaklumkan, pihaknya menerima panggilan kecemasan daripada kakitangan Hotel Grand Hyatt Erawan pada jam 5.30 petang yang memaklumkan mengenai penemuan mayat itu.
Jelas kenyataan itu lagi, kesemua mangsa merupakan warga asing.
Disyaki terima rasuah melebihi RM300,000, ketua pegawai operasi ditahan
Seorang Ketua Pegawai Operasi syarikat konsesi lebuh raya ditahan Suruhanjaya Pencegahan Rasuah Malaysia (SPRM), kerana disyaki menerima rasuah melebihi RM300,000.
Mahkamah tolak rayuan Jason Lo
Bekas Ketua Pegawai Eksekutif syarikat telekomunikasi tempatan, Jason Jonathan Lo hari ini gagal mengetepikan keputusan Mahkamah Tinggi menolak samannya terhadap Pertubuhan Berita Nasional Malaysia (Bernama) berhubung dua artikel yang diterbitkan pada 2019 dan 2020.