Addicted to Disney: Why former executives find it hard to stay away

By Thomas Buckley and Christopher Palmeri

Walt Disney Co. is suddenly teeming with former executives.
 

A number have returned or are angling to come back — from retired Chief Executive Officer Bob Iger, who resumed his duties a year ago, to former finance chief Jay Rasulo, who is seeking a board seat as part of a dissident investor group led by billionaire Nelson Peltz.

In his book, The Hero’s Farewell: What Happens When CEOs Retire, Yale University professor Jeffrey Sonnenfeld chronicled several personality types who find it hard to leave. They include “generals” who retire reluctantly and then spend their time plotting a comeback. 

 

The pain of separation can be so great it threatens an executive’s well being, according to Adrian Jacques Ambrose, a Columbia University psychiatrist who studies such life changes.

“When transitioning from a powerful leadership position to retirement, the potential identity loss can be anxiety inducing and distressing,” Ambrose said.

Boomerang executives are nothing new — Steve Jobs returned to Apple Inc. and Howard Schultz did so at Starbucks Corp.

Disney seems to have more than its share. Rasulo is part of an activist group that includes Isaac Perlmutter, the former head of the company’s Marvel division, who was fired earlier this year.

Since returning to lead Disney again in November 2022, Iger has brought into the fold two lieutenants who were once seen as his potential successor. Tom Staggs and Kevin Mayer are now advising their former boss on finding a strategic partner for the company’s ESPN network.

There are perks, of course, that come with working for Burbank, California-based Disney. Executives get to attend film premieres with movie stars. They get free theme-park tickets and a chance to influence pop culture globally. 

Then there’s the compensation: Iger and his predecessor Michael Eisner routinely popped up on the lists of the highest paid CEOs in America. Eisner also had trouble giving up and stepped down only after a boardroom revolt. 

Many of the executives returning to the Disney orbit spent the majority of their careers at the company, making the split that much more difficult.

How they left might also be a factor: Disney has said Perlmutter has a personal beef with Iger, who took away his responsibility for the Marvel film studio before ultimately showing him the door. A spokesman for Perlmutter said he’s backing the dissidents to maximize shareholder value, not because of a grudge.

Rasulo was considered a candidate for CEO until Staggs was elevated to chief operating officer in 2015. He then left the company.

“The Disney I know and love has lost its way,” Rasulo said in a statement announcing his board candidacy this week. He didn’t respond to a request for further comment.

Bill George, the former CEO of medical equipment maker Medtronic Plc, now coaches executives in transition at Harvard Business School.

“It’s hard to give up when you’ve got something great,” George said in an interview. “You’ve got to find something else to do. But you have to find something you really love to do.”