Disney Names James Gorman as New Chairman, Pushing CEO Succession to 2026

The Walt Disney Company announced Monday that James Gorman, the former CEO of Morgan Stanley, will succeed Mark Parker as its next chairman, effective January 2025. This appointment comes as Disney extends its timeline for naming a successor to CEO Bob Iger, now slated for early 2026. The move signifies a strategic shift in Disney’s leadership transition, prioritizing a thorough search for Iger’s replacement and leveraging Gorman’s extensive experience in corporate succession planning.

Key Takeaways:

• James Gorman, former Morgan Stanley CEO, appointed as Disney’s new chairman, effective January 2025.
• CEO Bob Iger’s succession process is pushed back to early 2026, allowing for a more comprehensive search.
• Mark Parker, stepping down from the board after nine years, will focus on Nike-related matters.
• Gorman’s extensive experience in managing corporate successions will be crucial in this process.
• The change reflects Disney’s commitment to finding a capable successor for Iger, and the delay allows for a more considered approach to a complex decision.

Gorman’s Role and Expertise

Gorman’s appointment is a significant move for Disney. His tenure as CEO of Morgan Stanley was marked by a successful and orderly transition of power, which saw Ted Pick assume the CEO role earlier this year. This experience in navigating complex leadership changes will be invaluable to Disney as it seeks to solidify a succession plan for Iger. Gorman’s involvement began less than a year ago, when he joined Disney’s board and was subsequently appointed head of the succession planning committee in August. **”The Disney board has benefited tremendously from James Gorman’s expertise and guidance, and we are lucky to have him as our next chairman – particularly as the board continues to move forward with the succession process,”** Iger stated in a press release. This quote highlights the confidence the board places in Gorman’s abilities.

Gorman’s Succession Planning Experience

The smooth handover at Morgan Stanley speaks volumes about Gorman’s skill in managing executive transitions. His leadership ensured a seamless shift in power, minimizing disruption and uncertainty within the company. This ability to maintain operational stability while facilitating a major leadership change is a crucial asset for Disney, which has seen a somewhat turbulent history of CEO succession in recent years.

The Delayed CEO Succession

The decision to push back the announcement of Iger’s successor to early 2026 marks a departure from Disney’s initial goal of naming a replacement in 2025. This extension is aimed at conducting a more thorough and comprehensive search for Iger’s replacement, considering both internal and external candidates. **”Pushing the date back to early 2026 will give the board more time to conduct due diligence on both internal and external candidates,”** according to sources familiar with the matter. The extended timeline reflects a strategic shift away from a rushed decision, instead prioritizing the selection of a leader who can effectively guide Disney into the future.

A History of Succession Challenges

Disney’s past experiences with CEO succession have been far from seamless. The abrupt firing of Bob Chapek in 2022 after a short and turbulent tenure underscored the challenges inherent in the process. Iger’s return as CEO, while temporarily stabilizing the situation, once again highlighted the need for a robust and well-defined succession plan. This renewed focus on a strategic and deliberate leadership transition reflects a conscious effort to avoid repeating past mistakes.

Potential Internal Candidates

Four of Iger’s direct reports – Jimmy Pitaro (ESPN Chairman), Josh D’Amaro (Disney Experiences Chairman), and Dana Walden and Alan Bergman (Disney Entertainment Co-Chairmen) – have reportedly already met with the succession committee, further underscoring the rigorous nature of the selection process. This suggests the possibility of an internal successor, but the board’s emphasis on a thorough search implies that external candidates are also being actively considered.

Mark Parker’s Departure

Mark Parker, who has served on the Disney board for nine years, is stepping down to focus on other commitments, primarily those related to Nike. His departure comes at a time of significant change at Nike as well, with Elliott Hill recently taking over as CEO. **”Parker will step down after nine years on the Disney board ‘to focus on other areas’ of his work,”** according to a Disney statement. Parker’s departure, while potentially representing an opportunity for fresh perspectives on the board, also signifies the loss of considerable experience and expertise during a period of transition at Disney.

The Future of Disney’s Leadership

The appointment of James Gorman and the extended timeline for Iger’s successor represent a decisive shift in Disney’s approach to leadership succession. The deliberate pace suggests a commitment to finding the best possible candidate for the top job rather than rushing the process for the sake of meeting a deadline. The extended timeline also allows for a more thorough review of candidates, both internal and external, providing the company with more time to find a leader capable of navigating the ever-evolving media and entertainment landscape. This careful approach reflects a considerable shift towards stability and future-proofing the company and its leadership.

Iger’s Continued Role and Beyond

While the focus remains on finding Iger’s successor, his current contract extends until December 31, 2026. Whether Iger will continue his tenure on the board beyond 2026 remains undecided, according to sources. Iger’s decision to continue helming the company for a fourth time, originally planned as a temporary fix, significantly impacted the timing of this succession process. Activist investors, such as Nelson Peltz, had previously criticized the company’s drawn-out succession process, emphasizing the importance of transparent and timely leadership transitions.

In conclusion, Disney’s decision to appoint James Gorman as chairman and delay the naming of Iger’s successor to early 2026 signals a move towards a more carefully considered and strategic leadership transition. This approach, combined with Gorman’s expertise in corporate successions, positions Disney to navigate this critical juncture with greater stability and foresight. The extended timeframe allows the company to thoroughly evaluate candidates, both internally and externally, ensuring the selection of a leader capable of overseeing Disney’s continued growth and evolution into the future.