The Walt Disney Company (DIS, Financial) has declared Tom Staggs as its new chief operating officer (COO). Staggs, 54, is the chairman of the company’s Parks and Resorts. He controls and manages the operations, strategy and creative development of the Disney’s iconic travel and leisure concerns.
Staggs would immediately take over the responsibilities and duties as the COO. Meanwhile, unless the company gets a new heir for the Parks and Resorts, Staggs would continue to chair it as well. The senior management team of Disney, that include all business segment leaders, would jointly report to the chairman and CEO of Walt Disney, Bob Iger and Staggs. An exception has been made for the chief financial officer, general counsel, chief communications officer and chief human resources officer. They would continue to report directly to Iger.
Great power comes with great responsibilities
“Thomas is an incredibly experienced, talented and versatile executive who has led Parks and Resorts during a time of unprecedented growth and expansion, including the construction of Shanghai Disney Resort. His proven ability to lead a business as well as his successful tenure as Disney’s former CFO make him an ideal chief operating officer, expanding his portfolio into all the company’s businesses,” said Iger.
The position, with which Staggs has been entrusted, doesn’t imply that he would become the CEO of the company. This appointment would give Staggs three years to indulge himself in all the sections of the business, so that the board would get to know him well. Iger served as president and chief operating officer for 5 years, under the former CEO Michael Eisner, without any guarantee of taking over.
“It’s a privilege to step into this role, and I’m humbled and honored by the opportunity. I look forward to working more closely with Bob and the talented senior management team across the company to continue to build Disney’s future through unparalleled creativity, innovative technology and global expansion,” said Staggs.
“Wall Street loves Tom Staggs,” said Laura Martin, an analyst at Needham & Co. “He has a return on capital focus, which Wall Street admires. He’s got good relationships with investors from his time as CFO. He’s a lifer at Disney and understands the culture.”
Disney bouquet
Staggs has led Parks and Resorts since 2010. Under his chairmanship, the global team has set new record in revenue, profits and attendance levels. Stagg’s tenure witnessed the development of Shanghai Disney resort, and Disney’s animal kingdom park (which had a new Avatar-based theme land). Meanwhile, Disney also launched two new cruise ships; inaugurated Aulani, a Disney Resort and Spa in Hawaii; increased three new lands at Disneyland, Hong Kong; got the size of Fantasyland at Magic Kingdom doubled; and finished a multi-year expansion of the Disneyland Resort with the inclusion of Cars Land and Buena Vista Street at Disney California Adventure Park.
Last word
Staggs joined as a manager of strategic planning at Disney in 1990. Later he became the chief financial officer in 1998. Before joining Disney, Staggs served in investment banking at Morgan Stanley (MS, Financial). He and ex-CFO Jay Rasulo switched jobs five years ago. This step was taken in order to give Staggs an experience in operations. Stagg will receive a remuneration of $2 million. He would also be eligible for stk awards and bonuses. The value of his stock awards this financial year would be $8 million. With this new move Disney envisions to bring in new expansion possibilities into its fray and add to it value as a business.
