Beneath the glamorous movie premieres and exhilarating amusement park rides, Disney is quietly conducting an important search for a successor to Bob Iger, the man who has been the recognizable face of Disney for much of the past twenty years.
The company recently faced challenges during its CEO succession process. After stepping back as CEO, Iger had to make a comeback in 2022 following financial struggles and conflicts under his successor, Bob Chapek.
Replacing a leader like Iger is no small task. He has bolstered Disney’s brand with key acquisitions such as Pixar, Marvel, and Lucasfilm, expanded its presence in China and India, and emphasized technology that enhanced Disney’s products and accessibility. His approachable demeanor and media savvy have been instrumental in managing the diverse elements under Disney’s umbrella, from theme parks to movie studios and streaming services.
The topic of succession was notably absent from Disney’s recent shareholder meeting, though it remains a crucial consideration among investors. In light of this, Disney has established a succession planning committee since 2023, with efforts intensifying last year under the guidance of Morgan Stanley Executive Chairman James Gorman.
Gorman expressed optimism in his January letter to shareholders, highlighting the committee’s “strong progress” over the past year in finding the right candidate to ensure Disney’s continued success.
Fortunately, Disney has time on its side, with Iger’s contract extended through the end of 2026 to address the recent tumultuous period. While Disney has refrained from commenting on the ongoing succession plans, the search is comprehensive, exploring options both within and outside the company. Internal candidates are receiving mentorship from Iger, engaging with board members, and undergoing external coaching.
Among the speculated internal candidates are ESPN chairman Jimmy Pitaro, Walt Disney Parks and Resorts chairman Josh D’Amaro, along with Disney Entertainment Co-Chairmen Alan Bergman and Dana Walden. In recent developments, candidates have been increasingly visible, with Walden actively discussing business initiatives at the Morgan Stanley Technology, Media & Telecom Conference.
“Disney is a great technology company and a great storytelling company,” she remarked, emphasizing technology’s role in delivering stories.
Meanwhile, Bergman and D’Amaro showcased Disney’s collaborative innovations at the South by Southwest festival.
Given Disney’s complexity, many anticipate the next CEO to be chosen internally. Internal candidates are favored especially when a company needs stability rather than a major shake-up, pointed out Jason Schloetzer, an associate professor at the Georgetown McDonough School of Business.
Henning Piezunka from Wharton Business School echoed this sentiment, noting Disney’s unique nature, which might pose challenges for an external candidate to immediately grasp.
However, can any in-house candidate manage Disney’s diverse ventures as effectively as Iger? Schloetzer suggested that Walden’s TV and streaming expertise makes her a strong contender, though she lacks experience with theme parks. On the other hand, D’Amaro’s three-decade tenure and theme park background are noteworthy.
Ultimately, the decision will likely hinge on choosing a candidate who aligns well with the board and can inspire executive leadership to drive Disney forward, as suggested by Schloetzer.
The entertainment giant recently saw growth propelled by the success of “Moana 2” and an increase in subscribers for Disney+ and Hulu. Iger, during the shareholder meeting, disclosed plans for a sequel to Pixar’s “Coco” and teased upcoming seasons for popular TV series “The Bear” and “Only Murders in the Building.”
Progress in ESPN’s upcoming “direct to consumer” service and development across Disney-owned parks and cruises were also discussed.
“We have more projects underway around the world than at any time in our history,” Iger noted.
The meeting also featured shareholders voting on proposals, notably rejecting a proposal to withdraw Disney’s involvement in the Corporate Equality Index. The measure was advised against by Disney’s board and received minimal support, with just 1% approval.
