Nandini Roy Choudhury, writer
Brief news
- Disney has appointed James Gorman as the new chairman, succeeding Mark Parker, effective January, while also planning to find a replacement for CEO Bob Iger by early 2026.
- Gorman, who joined Disney’s board over a year ago has experience in succession planning from his time at Morgan Stanley.
- Iger’s tenure has faced challenges, including the dismissal of his previous successor, Bob Chapek, leading to shareholder concerns about a stable succession plan.
Detailed news
According to a statement released by Disney on Monday, the media giant has selected James Gorman to take over as the next chairman of the firm, succeeding Mark Parker. This appointment will take effect in January. Additionally, Disney is laying the framework to choose a replacement for CEO Bob Iger in 2019.
Gorman became a member of Disney’s board of directors a little over a year ago, and in August, he was honored with the position of head of the committee responsible for succession planning. After assuming the role of board chairman from Nike Executive Chairman Parker, he will continue to serve as the chair of that committee.
“The Disney board has benefited immensely from James Gorman’s expertise and guidance, and we are fortunate to have him as our next chairman – particularly as the board continues to move forward with the succession process,” Iger said in a statement. “We are fortunate to have him as our chairman.” “I am profoundly appreciative of Mark Parker’s extensive board service and leadership, which have been immensely beneficial to this organization, its shareholders, and me as CEO.”
Parker will resign from the Disney board after nine years in order to concentrate on other aspects of his career, according to a Disney statement. According to an individual who is acquainted with the situation, this entails dedicating additional time to Nike-related matters. John Donahoe was succeeded by Elliott Hill as Nike’s CEO last week.
Early 2026 According to a report by CNBC last year, Disney had initially intended to announce a successor in 2025. According to individuals who are acquainted with the matter, the board will have additional time to conduct due diligence on both internal and external candidates by postponing the date until early 2026. They requested anonymity due to the confidentiality of the discussions.
Gorman has experience with succession planning: He supervised the seamless transition of power at Morgan Stanley, where Ted Pick succeeded him as CEO at the beginning of this year.
Disney has experienced difficulties with succession. Bob Chapek, Iger’s designated successor, was terminated by the board in November 2022 following a turbulent tenure that lasted less than three years. Disney shareholders are now anxious to witness the implementation of a succession plan following Iger’s return to the CEO position.
According to the people who are familiar with the situation, Iger’s four direct reports, namely ESPN Chairman Jimmy Pitaro, Disney Experiences Chairman Josh D’Amaro, and Disney Entertainment Co-Chairmen Dana Walden and Alan Bergman, have all conducted interviews with the succession committee in the past few weeks, ever since Gorman took over in August.
Prior to his appointment as the board’s succession chair in March, Gorman stated in a CNBC interview that Disney was conducting a “forward-thinking, forward-leaning, and incredibly disciplined process.”
However, the issue of who will succeed Iger will continue to loom over the company for another year, despite the fact that establishing a specific timeline for the appointment of a successor lends a bit of clarity to the search.
There have been five separate occasions when Iger has delayed his retirement in order to continue serving as the CEO of Disney. During his unsuccessful effort to win board seats earlier this year, activist investor Nelson Peltz focused on the board’s inability to identify a successor who would fulfill the board’s responsibilities for an extended period of time.
The present contract that Iger holds as CEO is valid until the 31st of December in 2026. The sources who are aware with the situation stated that he and the board have not yet determined whether or not Iger would prolong his board stay beyond the year 2026.
Source : CNBC News
