Disney’s No. 2 Faces Ultimate Test of His Skills

In a Wall Street Journal interview a decade ago, Robert Iger, who was at the time the newly named prime-time programmer at ABC, described himself as just a regular guy. “You don’t have in me this distinctive personality,” he said of himself.

Ten years later, those who have worked with the new president of Walt Disney Co. still find Iger elusive and enigmatic.

One of the most skilled corporate politicians in the media business, Iger’s star has continued to rise to the top of the entertainment world despite problems at ABC that might have derailed many executives. That has given rise to a reputation--one he and his supporters say is unfair--of being particularly skilled at “managing up” and enhancing his own career.

After Iger’s appointment Monday, and an enormously positive earnings report, Disney’s stock jumped more than 12% on Tuesday, to $37.50 a share. Helping boost the stock were favorable comments about the company and its possible turnaround by at least four major brokerage houses.

Iger, 48, has weathered plenty of storms, such as when ABC executives were at one another’s throats, undermining Disney’s $19-billion acquisition of the company in 1996. Sagging ratings only recently have risen due to the hit game show “Who Wants to Be a Millionaire.”

Now, his skills will be put to the ultimate test working as the second-in-command to Disney Chairman Michael Eisner in a structure in which no executives report exclusively to him and in which his authority is therefore unclear.

“There’s no question that Iger is ready to run the Walt Disney Co.,” said Steve Burke, who was in line to become president of ABC Inc. under Iger before leaving in 1998 to head Comcast Corp.’s cable operations. “But his effectiveness in that role will be determined by how much Eisner will let him do.”

Eisner has had a huge void in his No. 2 spot since the death of Frank Wells in a 1994 helicopter crash. In 1995, Michael Ovitz, his best friend at the time, was named president but was forced out a year later.

Eisner has been under growing pressure from the board to appoint a No. 2, as the company has stumbled financially and lost a flood of top-level executives, raising concerns on Wall Street about Eisner’s ability to keep talented executives.

Despite skepticism about Iger, some executives who remain close to Eisner believe that he’s made the right move--and that Iger’s astute management of Eisner himself could make him the best person for the job.

“I think Bob is great. With the size of the company, Michael clearly needs some help, which I think Bob will provide capably,” said former Disney Chief Financial Officer Richard Nanula, now head of the Internet sports venture Broadband Sports.

Indeed, days before Disney’s acquisition of ABC, Iger was to be promoted from president to chief executive of the Fortune 500 company. Some also believe that the rather complicated reporting structure, in which some executives report solely to Eisner and others jointly to Eisner and Iger, is merely a reflection of the entertainment industry, in which big egos often means that some executives can insist on reporting straight to the top. “This is a consequence of a company in which there is a cult of personality,” said one media executive. “At Disney, Eisner is that personality so everyone needs to report to him.”

Many believe that Iger and Eisner can sort out duties.

“No one handles Eisner better than Iger, so this could be good for Disney,” said one Hollywood entertainment lawyer, adding that he admires Iger’s honest and straight-forward approach.

But analysts and industry executives say Eisner purposely creates ambiguous roles to give himself more options should the situation not work out. They say Iger will succeed in the job only if he firmly takes the authority and sets an agenda rather than wait for Eisner’s orders. But some associates say that is not the dynamic of their relationship. “Michael has weeded out people who have bucked him,” said one former Disney executive. “Michael feeds on the fact that Iger caters to his interests. It will be interesting to see whether Bob asserts himself in this job.”

Iger, a native of Long Island, N.Y., graduated from Ithaca College and worked briefly as a television weathercaster and reporter before joining ABC at an entry level job 26 years ago.

A dogged worker who rises at 5 a.m. to work out and who routinely puts in 12-hour days, Iger climbed the ladder at ABC, getting his biggest career boost after working on the problem-filled Winter Olympics in 1988 in Calgary.

After being named ABC prime-time chief, he gained attention for championing such offbeat shows as “Twin Peaks” and “Cop Rock.”

He says his focus and drive are key to his success. “I don’t spend as much time working the room as some,” Iger said in an interview Tuesday. “I’m much more comfortable at my desk in my office.”

While people who have worked for Iger say he is guarded, controlled, disciplined and cool under pressure, Iger describes himself as “measured and at times reserved.”

“I’m a businessman, and I like to behave accordingly,” said Iger, who says he is driven by challenge rather than money or power.