The decision to remove a well-respected CEO in the most confrontational manner possible sparked indignation and a drop in the stock price: “It’s not healthy for the company.” Morale is at an all-time low.”

On the morning of June 9, one of the most powerful media executives was meeting with a group of individuals when he learned that Disney CEO Bob Chapek had abruptly sacked chairman of entertainment and programming Peter Rice.

“Chapek just made another massive mistake,” this exec announced. The market may have agreed: Disney stock fell nearly 4 percent as the news became public, a larger decline than the market as a whole on Thursday.

From the uppermost circles of Hollywood power to lower-echelon actors, Chapek’s decision to terminate a long-serving and well-respected executive in the most unceremonious conceivable manner sparked waves of astonishment and fury. Another of the industry’s most seasoned executives admits, “There are very few things that startle me.” “I’m astounded.”

Several insiders tell The Hollywood Reporter that Chapek’s firing was the latest in a long line of gaffes by the executive, including Disney’s legal battle with Scarlett Johansson and the disastrous flip-flop on Florida’s so-called “Don’t Say Gay” statute. “When he was just getting his feet back on the ground, Chapek chose another unfavorable news cycle,” says an experienced communications executive.

Chairwoman Susan Arnold’s remark about the board’s “confidence and support” for Chapek also received critical feedback.