The Walt Disney Co. announced today (Nov. 6) that it has hired Hugh Johnston, the chief financial officer of PepsiCo, as new CFO, reporting directly to CEO Bob Iger. The appointment came four months after Disney’s previous CFO Christine McCarthy resigned for personal reasons. At the time, Kevin Lansbury, the CFO of Disney’s parks, experiences and products units, stepped in and took over as interim financial chief. He will now return to his old posting.
“Very few companies have withstood the test of time that Disney has, making the company as rare as it is special,” Johnston said in a statement to Disney today. “I share Bob’s enthusiasm for Disney’s future, and I am incredibly excited to join this management team in this moment of opportunity and possibility.”
This leadership change comes as Disney tries to turn around from financial troubles throughout its business sectors. The entertainment giant carried out a series of cost-cutting measures this year, including laying off 7,000, or 3.2 percent, of its employees between March and May. It also increased the prices of ad-free packages at Hulu+ and Disney+ to encourage more customers to use their ad-supported versions. The company is mulling multiple major deals, including selling its India division to billionaire Mukesh Ambani, offloading ABC to local broadcaster Nextstar, and a strategic partnership with ESPN.
Johnston, 62, worked at PepsiCo for 34 years and was the food and beverage giant’s CFO for almost 14 years. Iger said in a statement that Johnston’s experience with “overseeing a diverse portfolio of top global brands” at a multinational food corporation will help with Disney’s plans to “drive growth and value creation.”
Johnston was in charge when PepsiCo went head-to-head with activist investor Nicholas Peltz, who sold his PepsiCo stake in 2016 after trying unsuccessfully to break up the company. Peltz is vying for multiple board seats at Disney for his hedge fund, Trian Fund Management, on the heels of the company’s ongoing stock decline.
Disney shares are down 5.72 percent year to date, while the S&P 500 is up 14 percent. The company is scheduled to report earnings for the quarter ended September on Nov. 8.
