Walt Disney said on Monday it would announce a successor for CEO Bob Iger in early 2026. This will be the first time that Disney shall be formally announced a timetable for Iger replacement. The investor community said the news signaled progress for a company that has struggled to find a successor to CEO Iger, who shaped the modern Disney through a series of acquisitions.
Disney said Morgan Stanley veteran James Gorman would become chairman of the board on January 2, after stepping down from his post as executive chair of Morgan Stanley at the end of the year. He served as CEO of the Wall Street bank for 14 years and is credited with growing its wealth management business.
James Gorman new Disney chairman
Disney has tapped James Gorman to replace Mark Parker as the company’s next chairman, effective in January. Gorman has been praised for deftly executing Morgan Stanley’s succession plan, in which Ted Pick was chosen from among three contenders for the top job.
Gorman joined Disney’s board less than a year ago and was named the head of the succession planning committee in August. He will continue to lead that committee after he takes over as board chairman from Nike Executive Chairman Parker.
“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 said in a statement. “I’m extremely grateful to Mark Parker for his many years of board service and leadership, which have been so valuable to this company and its shareholders, and to me as CEO.”
One financial executive who has worked with Gorman said Disney has made a choice who will “insist on rigor and transparency” in choosing a successor for Iger.
Disney’s struggling to find next CEO
Activist investor Nelson Peltz criticized Disney’s board, saying its mishandling of succession planning resulted in Iger’s return in November 2022, after the board ousted his hand-picked successor, Bob Chapek.
“Important to see Disney making progress on this critically important initiative,” said Richard Greenfield, LightShed partners’ media and technology analyst. “Most interesting is that it implies that Iger is actually leaving after 2026.”
Iger, who built out Disney’s media empire through the high-profile acquisitions of Pixar, Marvel and the Star Wars franchise, has seen his retirement date extended five times.
Upon his return to Disney, Iger initially planned to stay for two years after coming out of retirement but agreed to extend his tenure through 2026.
Disney’s new CEO by 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, adding this would “allow ample time for successful transition before the conclusion of Bob Iger’s contract in 2026.”
Disney said its board discussed succession planning at each of its regularly scheduled meetings in fiscal 2024 and continues to review both internal and external candidates.
Disney had initially targeted 2025 to announce a successor. Pushing the date back to early 2026. This will give the board more time to conduct due diligence on both internal and external candidates, as per people familiar with the matter.
Candidates for Disney’s CEO succession plan
Iger’s four direct reports ESPN Chairman Jimmy Pitaro, Disney Experiences Chairman Josh D’Amaro, Disney Entertainment Co-Chairmen Dana Walden and Alan Bergman have all interviewed with the succession committee in recent weeks.
While putting a specific timeline on naming a successor adds a bit of clarity to the search, it also means the question of who will take over for Iger will continue to hover over the company for another year.
Iger’s current contract as CEO runs until December 31, 2026. He and the board haven’t decided if Iger will extend his board tenure past 2026, said the people familiar with the matter.
Disney stock
Disney’s stock closed down 0.68%, but rallied in after-hours trading.
