Christine McCarthy, Disney CFO, is stepping down on family sick leave
Christine McCarthy, Disney’s chief financial officer, is stepping down to take sick leave and will help search for a long-term successor, the company said Thursday.
McCarthy, 67, has been with the company for more than two decades. She became CFO in 2015 and is widely regarded as a key ally of Bob Iger, having helped lead his return as CEO of Disney last year.
In recent conversations with investors, she also touted Iger’s aim to cut approximately $5.5 billion in annual costs through layoffs and TV and movie cuts.
She will continue to serve as a strategic advisor to ensure a successful transition as Disney searches for a permanent replacement, the company said in a statement.
McCarthy’s husband has been ill in a care facility for some time, but her abrupt departure came as a surprise to some colleagues and associates, the Wall Street Journal reported.
Disney Chief Financial Officer Christine McCarthy resigns on sick leave and will help search for long-term successor
McCarthy, 67, has been with the company for more than two decades. She is widely regarded as a key ally of Bob Iger (above), having helped drive his return as CEO of Disney last year
A person close to her said they were unaware of any dramatic changes in her life recently, according to the Journal.
Kevin Lansberry, currently chief financial officer for Disney’s Parks, Experiences and Products Division, will become the company’s interim CFO effective July 1.
“While I am leaving the CFO role, I look forward to helping with the transition and will always support the success of my extended Disney family,” McCarthy said in a statement.
In a profile for the Smith College alumni publication, McCarthy spoke about combating sexism and wage inequality early in her career and juggling the demands of work and raising two children.
She also survived two breast cancer attacks, in 2000 and again in 2015, shortly after being named Disney’s CFO.
“I promised myself that I can and will make it through anything,” McCarthy told the publication.
McCarthy was instrumental in preparing Iger’s return to the helm of Disney last year, instigating the impeachment of his predecessor, Bob Chapek.
In November, McCarthy went straight to Disney’s board and expressed lack of confidence in Chapek after the company endured a disastrous financial quarter.
In November, McCarthy went straight to the Disney board expressing her lack of confidence in Bob Chapek (above), triggering his impeachment and Iger’s return.
Disney’s share price to date in 2023 can be seen above. Concerns about turning Disney+ into profit have weighed on stocks
She reportedly told the board she was unhappy with the way Chapek had communicated with investors during the Nov. 8 conference call.
Chapek was fired and Iger, who ran the company from 2005 to 2021, returned from retirement to take charge again.
McCarthy was a regular at Disney earnings calls, including last month when the company faced questions after its flagship Disney+ streaming offering lost about 4 million subscribers.
Disney’s streaming division posted a loss of $659 million for the quarter, though that was a smaller loss than analysts had expected and $400 million less than the previous quarter’s loss.
Overall, Disney posted earnings of $1.27 billion for the quarter ended April 1, on revenues of $21.81 billion. But investor concerns about the battle to make Disney+ profitable weighed on the stock.
To boost profits, Iger has vowed to cut $5.5 billion in annual costs, including a $3 billion reduction in spending on non-sports content.
Iger was full of praise for McCarthy when she resigned to take medical leave
Disney laid off about 7,000 employees this spring in several rounds of budget cuts, and the uproar included the impeachment of Marvel Entertainment chairman Isaac Perlmutter, Iger’s nemesis.
In contrast to Perlmutter’s non-ceremonial defenestration, Iger was full of praise for McCarthy when she resigned to take medical leave for the family.
Iger called McCarthy “one of the most admired financial executives in America” ββin a statement Thursday.
“Christine has served as an important strategic anchor during a period of great transformation,” Iger added.