Disney CFO clashed with top executives before stepping down

Walt Disney Co. Chief Financial Officer Christine McCarthy, who has been a key executive at the entertainment giant for more than two decades, is stepping down.

- Joe Flint

Disney said McCarthy is taking a family medical leave. McCarthy has an ailing husband, who has been in a healthcare facility since the start of the year.

The abrupt exit of McCarthy caught some colleagues and associates by surprise. A person familiar with her situation said there have been no dramatic changes in her life recently that would require her to step back.

McCarthy has clashed with Disney Chief Executive Robert Iger and other top executives over strategy, including the amount of money Disney spends on content and a recent restructuring that she felt didn’t go far enough to streamline the company, a person familiar with the matter said.

In February, Iger reorganized the company and created three main units: one for theme parks and consumer products, another for ESPN, and a Disney Entertainment unit that houses movie and television operations, as well as streaming services Disney+ and Hulu.

McCarthy pushed for the Disney Entertainment unit to be further consolidated to improve profit margins and give Disney a leaner structure more akin to Netflix, putting her at odds with the unit’s leadership, the person familiar with the matter said.

McCarthy was unafraid to challenge her bosses if she felt a bad move was being made, people who know her said. A familiar figure to Wall Street, McCarthy delivered financial results for Disney to analysts for decades in a robotic voice that belied her sharp tongue, quick wit and strong opinions.

Kevin Lansberry, who is currently executive vice president and chief financial officer of Disney Parks, Experiences and Products, will step in as interim CFO starting July 1. McCarthy will serve as a strategic adviser through June 2024, the company said.

Iger said McCarthy’s impact on Disney “cannot be overstated." A spokeswoman declined to comment beyond his statement.