Walt Disney announced yesterday that Morgan Stanley veteran James Gorman will become its new chair starting in January 2025. This marks the first time Disney has publicly provided a timeline for the transition of its CEO, with current CEO Bob Iger set to step down in 2026.
Gorman, who is credited with transforming Morgan Stanley into a wealth management giant during his 14-year tenure as CEO, will officially retire from his role at Morgan Stanley at the end of 2024. His experience in leadership transitions, having successfully handed over the reins of Morgan Stanley to Ted Pick in a well-executed succession plan, will be invaluable to Disney.
At Disney, Gorman will succeed Mark Parker, the outgoing chair, who has served on the board for nine years. Parker, who also serves as the executive chair at Nike, is leaving to focus on other responsibilities. Gorman’s appointment signals a strategic move by Disney’s board, especially as the company continues to grapple with a leadership transition plan that has been a source of criticism from investors like Nelson Peltz.
Disney’s CEO Bob Iger, who is often celebrated for his transformative leadership and strategic acquisitions of Pixar, Marvel, and Lucasfilm, initially planned to retire in 2020. However, following the challenges faced by his successor, Bob Chapek, Iger returned as CEO in 2022 and extended his contract through 2026. Disney has faced significant scrutiny over its handling of leadership transitions, and the appointment of James Gorman, along with a set timeline for finding Iger’s replacement, seems designed to address these concerns.
According to Iger, a new CEO is expected to be named by early 2026. This timeline is seen as essential to ensure a smooth transition before Iger’s contract ends in December 2026. “A critical priority before us is to appoint a new CEO, which we now expect to announce in early 2026,” Gorman said in a statement.
Disney’s board has been actively engaged in discussions around succession planning throughout 2024, reviewing both internal and external candidates for the CEO role. Among the top internal contenders is Dana Walden, Disney Entertainment’s co-chair, who has a strong creative background with a proven track record of success in television production.
Another potential candidate is Josh D’Amaro, chairman of Disney Experiences, who oversees the company’s highly lucrative theme parks division. Known for his charisma, D’Amaro has been a key figure in Disney’s post-pandemic recovery, driving both revenue and visitor satisfaction. ESPN chairman Jimmy Pitaro is also seen as a strong candidate, particularly due to his leadership in the sports network’s digital transformation.
Finally, Disney Entertainment co-chair Alan Bergman, a long-time Disney veteran who oversees the film division, has also emerged as a contender. Under his leadership, Disney’s studios have continued to produce major box office successes, making him another strong option for the top job.
As Disney prepares for its next phase of leadership, it faces external pressures from competitors and regulatory bodies. One of the more significant points of contention has been the allocation of satellite spectrum, which involves Disney as well as other major players in the media industry. Additionally, Disney continues to battle economic headwinds as it navigates the rapidly changing landscape of entertainment and streaming services.
While the focus is on the internal candidates, there is also the possibility of external hires as the company looks for the right fit to lead the media giant into the future. Whoever is chosen, the successor will need to contend with the challenges of evolving consumer behavior, the rise of streaming competitors, and continuing integration across Disney’s massive portfolio of businesses.
Credit: This article is based on information from Reuters and Bloomberg.
Key Highlights:
- James Gorman, former Morgan Stanley CEO, will become Disney’s new chair in 2025.
- Disney has set a timeline to announce a replacement for Bob Iger by early 2026.
- Top internal candidates for CEO include Dana Walden, Josh D’Amaro, Jimmy Pitaro, and Alan Bergman.
- Disney’s board has been actively involved in succession planning throughout 2024.