Disney CFO Staggs Swaps Jobs With Parks Chief Rasulo (Update3)

Nov. 12 (Bloomberg) -- Walt Disney Co. Chief Financial Officer Tom Staggs and Jay Rasulo, head of the company’s theme parks, will swap positions in a move designed to bolster the experience of both executives.

Staggs, 49 and Rasulo, 53, will remain members of Disney’s senior management group reporting to Chief Executive Officer Robert Iger, Burbank, California-based Disney said today in an e-mailed statement. The switch takes effect at year end.

With the change, Iger gives two of his deputies fresh challenges and an opportunity to broaden their experience as the company and economy emerge from the recession. Staggs maintained the highest debt rating among the biggest U.S. media companies, while Rasulo expanded the parks, resorts and cruise lines.

“This is something I wanted to do a year ago, but I waited until the economic climate stabilized,” Iger said in an interview. “I have a lot of confidence in both them. They are two very strong executives.”

Disney directors endorsed the decision to switch the executives, Iger said. The move didn’t require board approval. More executive changes may be in the works, Iger said, adding no announcements are imminent.

The switch isn’t intended to groom either executive for a higher position, Iger said.

“The desire here was to give both of them better and new experience, not to give any one of them a leg up or a position for anything further,” Iger said.

Disney fell 24 cents to $29.05 at 4 p.m. in New York Stock Exchange composite trading, and has gained 28 percent this year. The stock jumped 4.1 percent in extended trading to $30.25 after the company reported higher fiscal fourth-quarter profit, beating analysts’ estimates.

Studio Changes

Profit excluding some items was 46 cents a share, the company said after markets closed. Analysts had projected 41 cents, the average of 21 estimates compiled by Bloomberg. Revenue of $9.87 billion exceeded the $9.3 billion average of 18 estimates.

Iger, 58, named Rich Ross, the former president of the Disney Channel, to become chairman of the film studios last month, replacing Dick Cook.

“It’s great to have the luxury as a company to promote executives from within as we did with Rich Ross,” Iger said.

In his 10 years as CFO, Staggs oversaw Disney’s acquisition of Capital Cities/ABC, the Pixar animation studio and the pending deal to buy Marvel Entertainment Inc. He also helped steer the company through economic downturns in 2001 and 2008.

Shanghai Expansion

Staggs, in his new role, will oversee the design and construction of a $3.6 billion theme park in Shanghai, as well as the development of a Hawaiian resort, the first not attached to a theme park, and a doubling of the company’s cruise business.

Before joining Disney in 1990, Staggs worked in investment banking at Morgan Stanley & Co. He has a bachelor’s of science degree in business from the University of Minnesota and a master’s of business administration from Stanford University.

“Staggs has run one of the tightest ships in corporate America,” David Bank, an analyst at RBC Capital Markets, said in an interview. “Maybe they are grooming Staggs for a bigger role at the company, but it’s also not the easiest time for the parks division at the moment.”

Rasulo oversaw the design and construction of California Adventure at the Disneyland resort in Anaheim, California, and the creation of Hong Kong Disneyland. He led the parks through the plunge in tourism after the terrorist attacks on Sept. 11, 2001, and through the current recession.

Rasulo Background

Before joining Disney, Rasulo held positions with Chase Manhattan Bank and the Marriott Corp. He has an economics degree from Columbia University in New York and he earned masters’ degrees in economics and business administration from the University of Chicago.

“I have a real desire as part of the planning and succession process to broaden and deepen the responsibilities and experience of my executives,” Iger said. “This was a great opportunity to do that with these two.”

To contact the reporter on this story: Andrew Fixmer in Los Angeles at afixmer@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net.