Peter Bart: How Trump’s Policies, AI, and Tariffs are Impacting Business Growth and Leadership

In an unexpected turn of events this week, the legacy of Lew Wasserman, a pivotal figure in Hollywood and former CEO of Universal, seemed to cast a long shadow over the current landscape of corporate leadership. Wasserman, who navigated the industry until around 2000, would likely be surprised to witness the shrinking number of major executives today.

This week, his grandson, Casey Wasserman, who holds considerable influence in the industry, notably lost significant control over both his management firm and potentially the LA28 Olympics. This shift highlights a broader trend in the business world where CEOs face increasing instability amid ongoing economic disruptions.

Research has shown that CEOs are facing higher rates of job turnover, a phenomenon attributed to the upheaval experienced during the Trump administration. Significant leadership changes occurred in the first quarter of the year alone, including appointments at major companies like Walmart, PayPal, and Disney. In an especially notable development, Bob Iger is set to step down next month, leaving his position at what many call the “happiest place on earth.”

As media experts have recently questioned the admiration once directed toward Jeff Bezos, this scrutiny stems from multiple factors, including his high-profile lifestyle and recent cutbacks at the Washington Post.

The increased unease surrounding CEOs has not been lost on their employees and shareholders, particularly as recent market fluctuations illustrate ongoing economic concerns.

Interestingly, while top executives at banks are quick to dismiss their peers, they continue to grant themselves significant pay raises. Executives at major institutions like Bank of America and Goldman Sachs saw average compensation increases of 21% in the past year. Jamie Dimon of JP Morgan received a $43 million base salary, all while celebrating the completion of a new headquarters. Executives involved in acquisition battles, such as David Zaslav, often enhance their pay packages through stock options.

As public sentiment grows increasingly critical of the wealthy elite, counter-movements emerge. A “March for Billionaires” is set to take place in San Francisco, where tech industry leaders plan to protest a proposed wealth tax. Derik Kauffman, founder of an AI startup, commented, “Vilifying billionaires is popular, but losing them is expensive.”

This skepticism extends to the recent appointment of Josh D’Amaro as Disney’s new CEO. While praised for his achievements in theme parks, some analysts have voiced concerns regarding his lack of experience in the wider entertainment sector.

The Los Angeles Times quoted a former Disney executive who remarked, “You can’t achieve growth just by increasing admission prices. No one except the wealthy will be able to afford it.” The Disney brand remains strong in areas like theme parks and cruise lines; however, the underperformance of the Disney-Pixar film Elio at the box office serves as a warning regarding the risks of new content development.

Reflecting on the company’s storied history, another Disney veteran noted, “Walt Disney himself was a storyteller continually thinking outside the box. But he also focused on creating colleges like Cal Arts or even designing entire new communities.”

The demanding environment for CEOs was further explored in a recent New York Times article titled “What’s Keeping CEOs Awake at Night?” The piece highlighted a range of challenges, including advancements in AI, tariffs, and increasing pressures for growth in a stalling global economy.

One CEO emphasized the urgency of achieving growth in a climate where economic expansion hovers around 3%. “How do we drive growth without stifling creativity?” they posed. This sentiment was echoed by an executive from Spencer Stuart, who noted that boards are growing more impatient with outgoing leaders.

Even veterans of the industry, like Lew Wasserman, faced challenges as they navigated shifting corporate landscapes. Late in his career, Wasserman made a pivotal decision to sell his company to the Japanese firm Matsushita, which resulted in a diminished role for him in the new corporate structure.

During a lunch at Universal Studios, Wasserman reflected on the change within the company, saying, “The chicken salad still tastes the same and so does the tuna, but the flavor of the room has sure changed, hasn’t it?”