Disney succession: Inside the search for a CEO to replace Bob Iger

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The Walt Disney Co. can ill afford another succession implosion.

When Bob Iger previously stepped down as CEO, the transition didn’t go well. There was internal disagreement, his successor was quickly removed, and Iger ultimately had to return to lead the company for another four years.

Bob Iger’s twenty-year run as Disney’s CEO will end when his contract expires at the end of the year. The company’s board of directors is now focused on choosing a new leader during a challenging period for the entertainment industry.

For this leadership change, Disney has brought in an experienced leader from outside the company to guide the process, which should happen over the next few weeks.

A year ago, James P. Gorman, who previously led Morgan Stanley, became Disney’s chairman, and finding the next CEO was immediately his top priority. The 67-year-old, originally from Australia, has a proven track record of success. During his 14 years as CEO of Morgan Stanley, he turned the bank around and set it up for continued success before retiring in December 2024, ensuring a smooth transition to new leadership.

According to Wharton School Dean Erika H. James, James handled recent leadership changes exceptionally well. She noted his willingness to tackle difficult challenges, saying, “He’s not afraid to do the hard things.”

Disney hasn’t shared details about its discussions. They also wouldn’t allow Gorman to comment for this article.

So, everyone’s been watching to see who’ll take the reins, and it seems like Josh D’Amaro, who currently runs the parks, is the frontrunner. From what I’m hearing, people on Wall Street are really hoping he gets it. He’s been with Disney for 27 years and is leading this massive, five-year, $60 billion plan to expand the parks and cruise line – he’s basically the driving force behind it all! As a Disney fan, I’m definitely intrigued to see how things play out.

Despite the speculation, Dana Walden, a highly-regarded television and streaming executive, remains a strong contender to become the first female leader of the 102-year-old company. Alan Bergman, who heads the movie studio, and Jimmy Pitaro, chairman of ESPN, are also considered potential candidates.

This time, Disney’s board took a more structured approach to finding a new CEO by creating a dedicated succession committee. This group, which includes Jamie Gorman, Mary Barra (CEO of General Motors), Calvin McDonald (CEO of Lululemon Athletica), and Jeremy Darroch (former head of Sky broadcasting), is carefully assessing each candidate’s skills, experience, and how well they connect with the public. They’re also looking for qualities that aren’t easily measured – the leadership traits needed to navigate Disney through its current tough business situation.

The media industry faces many hurdles right now, such as declining viewership of traditional TV, the rise of streaming services, advancements in artificial intelligence, economic instability in the U.S., and a highly charged political climate.

James explained that there’s a lot of instability right now – in the economy, global politics, and even in society. This creates a lot of worry for people, making it hard for leaders to establish themselves and navigate constant challenges. It feels like there’s a new crisis happening every day.

Choosing a new CEO for a beloved company with 230,000 employees is incredibly challenging. Promoting someone from within could lead other qualified candidates to leave, forcing the board to find ways to keep them at Disney.

I really admired what Gorman did at Morgan Stanley. He led them through the tough times of the Great Recession and not only got them back on their feet, but also made the company and its work environment much stronger. He definitely earned the respect of everyone on Wall Street.

Born and raised in Melbourne, Gorman initially studied law, but discovered it wasn’t the right fit. He relocated to the U.S. in the mid-1980s and earned an MBA from Columbia University. He often jokes that he needed to stay in the U.S. to earn enough to pay off his student loans, which had a very high 24% interest rate.

When he retired, Gorman was approached to join numerous corporate boards.

James, a Morgan Stanley board member, explained that the new CEO chose Disney because he saw it as his biggest challenge. He believed he could revitalize the company, especially considering the difficulties it was facing.

Disney faced a lot of challenges, including a fight with two wealthy investors who were critical of CEO Bob Iger and the company’s struggling stock. Iger had previously stepped down as executive chairman in late 2021, but he was brought back just eleven months later after the board removed his replacement, Bob Chapek.

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The Burbank-based company is facing challenges after its ambitious expansion into streaming. Its stock price has been declining, investors are becoming impatient, and its major film and television studios are feeling the strain.

Bob Chapek became Disney’s CEO in February 2020, right before the COVID-19 pandemic began to seriously impact the world. This immediately shut down many of Disney’s core businesses, including theme parks, movie theaters, and sporting events.

Initially, the board hoped to create a system where both leaders could share power, but this plan actually caused resentment and conflict.

By the beginning of 2022, Bob Iger had left Disney, and the company faced increasing turmoil. Disney became a target for Florida Governor Ron DeSantis, and his handling of Florida’s controversial “Don’t Say Gay” law gave DeSantis an opportunity to criticize the company. DeSantis labeled Disney as being overly progressive, or “woke,” and then revoked the special development authority Disney had around its Disney World property—a significant setback for the company’s large presence in Central Florida.

Disney executives privately complained to the board about Bob Chapek’s performance. As losses from Disney’s streaming services grew, Wall Street became increasingly concerned. Despite this, the board initially renewed Chapek’s contract, only to remove him from his position just five months later.

David F. Larcker, from the Stanford Graduate School of Business, noted the company’s leadership transitions have been inconsistent. He added that this has been somewhat problematic for a company of its size.

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I always thought it was strange when Disney first announced Bob Iger was going to retire back in 2015. He was really hitting his stride in his early 60s and the company was doing so well – it just didn’t seem like he was ready to step down! Now, at 74, he’s been actively helping to prepare potential successors, which makes a lot more sense, according to people who are in the know.

Finding a new CEO has historically been a weak spot for Disney. Previous CEO Michael Eisner clung to his position until disagreements with investors and Steve Jobs, co-founder of Pixar, created a major crisis. Bob Iger took over in 2005 and quickly strengthened Disney’s creative side by acquiring Pixar, Marvel, and Lucasfilm, the company that makes “Star Wars.”

Disney appointed Tom Staggs as chief operating officer in 2015 with the intention of him eventually succeeding Bob Iger. However, Staggs resigned the next year, reportedly frustrated that Iger remained in charge.

Larcker explained that the current situation has created a problematic cycle where individuals are set up for failure, and Bob Iger repeatedly extends his tenure – first by two years, then five. He believes this isn’t how leadership transitions should happen.

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For a hundred years, the Walt Disney Company has transformed the entertainment world, from creating beloved theme parks to pioneering animation and children’s television.

By the time Iger returned to Disney in November 2022, the world had changed.

Investors on Wall Street stopped encouraging companies like Disney to spend heavily on gaining streaming subscribers to challenge Netflix. Instead, they started pushing for profitability, even though Disney and other established entertainment businesses were losing billions of dollars on their streaming services.

Disney stock had climbed to nearly $200 a share in March 2021. Shares closed last week at $111.20.

According to media analyst Robert Fishman of MoffettNathanson Research, Disney is currently facing a particularly noteworthy situation.

According to Fishman, the company needs to demonstrate to investors that its valuable content and theme parks are worth the investment. Investors also need to be convinced that the company’s shift towards streaming will ultimately be successful and generate significant returns, even if those benefits aren’t immediately obvious.

The next CEO of Disney faces a challenging future. They’ll need to make Disney+ a top streaming service, revitalize the company’s movie business – including major franchises like Marvel, Pixar, and Star Wars – and update the theme parks. Plus, they’re building a new resort in Abu Dhabi. A key task will be to embrace artificial intelligence while protecting the value and appeal of iconic characters like Moana and Winnie the Pooh.

The four people vying to become Disney’s next CEO each lead a significant part of the company, raising concerns that those who don’t get the job may leave. This happened before when Bob Chapek became CEO six years ago – Disney’s head of streaming, Kevin Mayer, resigned shortly after.

“Successions are multi-person events,” Larcker said. “It’s not just about the CEO.”

According to board member Erika James, Morgan Stanley CEO Ted Gorman guided the company through a several-year plan with a clear and structured approach.

People applying for jobs at Morgan Stanley, like those at Disney, have spent a lot of time meeting with the company’s board members.

James explained that Gorman handled the leadership transition by focusing on the human impact. He emphasized that everyone involved – shareholders, employees facing a new leader, and those hoping to fill the role – are individuals with real lives and concerns.

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In a conversation with Morgan Stanley, Gorman revealed he’s often asked how the company managed its leadership transition so effectively.

Gorman explained it begins with a simple question for leaders: do you actually want to step down? He said that when you do, it creates space for your replacement to thrive and have the best chance at success.

I was really fascinated to hear that Morgan Stanley chose Ted Pick as their new CEO back in October 2023, taking over from Gorman. It’s interesting how they handled the other contenders, though – they didn’t just dismiss them! Instead, they gave each of the other two candidates important roles as co-presidents and, incredibly, a huge $20 million bonus just to ensure they stayed with the company. It seems like a smart way to keep everyone motivated and valued.

Speculation is rampant that Gorman and the board will make similar chess moves at Disney.

Bob D’Amaro is very familiar with Disney’s theme parks and leads both the video game division and the creative Imagineering team. However, he lacks experience in the film and television industries, which are essential for Disney’s overall success.

Since joining Disney in 2019 after working at Fox, Walden has focused on television and streaming, not the company’s theme parks in Anaheim and Orlando. She’s particularly skilled at managing relationships with talent – including agents, producers, and writers.

People in the film industry are curious about how Disney will organize its top management. Specifically, they’re asking if the new CEO will have two presidents working under them.

In 2024, Disney’s board told investors they weren’t just looking for a new CEO, but also wanted to set them up to succeed long-term. This means building a strong team of experienced leaders who can guide the company forward together.

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Disney is expected to name Iger’s successor next month.

According to Gorman, growth happens when organizations embrace change. Repeating the same actions won’t lead to progress, he explained to Bloomberg in 2023.

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2026-01-20 14:02