As Disney (NYSE:DIS) navigates a period of significant transition, CEO Bob Iger’s search for his successor has taken center stage. With Iger’s contract set to expire in December 2026, the clock is ticking for the company to find a leader capable of steering Disney through its next chapter. The focus on Disney CEO succession has never been more intense, especially after the challenges faced during Iger’s previous handoff to Bob Chapek.
Iger’s Commitment to Succession
Bob Iger, who returned to Disney’s helm in November 2022 after Chapek’s brief and tumultuous tenure, has made CEO succession his top priority. “I think it would be safe to assume that I think about [CEO succession] all the time,” Iger revealed during a podcast with Kelly Ripa. This statement underscores his determination to ensure a smooth and successful transition, especially after the difficulties faced during the previous succession attempt.
Disney’s board has also taken proactive steps to support Iger in this critical mission. Last week, the company announced that board member and former Morgan Stanley CEO James Gorman would chair Disney’s succession planning committee. Gorman, who successfully managed his own succession at Morgan Stanley, will be joined by other prominent board members, including Mary Barra, CEO of General Motors (NYSE:GM), and Calvin McDonald, CEO of Lululemon (NASDAQ:LULU).
Challenges Facing Disney
The stakes for Disney CEO succession are incredibly high, given the numerous challenges the company currently faces. Since Iger’s return, Disney has grappled with various issues, from declining demand in its parks business to creative hurdles at the box office. The company has also been dealing with fundamental shifts in the television industry, particularly as it transitions away from linear TV to streaming.
Iger has been candid about the difficulties Disney has encountered in its aggressive push into the streaming business. At an investor conference in May, Iger acknowledged, “We got into the streaming business in a very, very aggressive way…We tried to tell too many stories.” This approach led to substantial losses, with Disney’s streaming division posting a $4 billion loss. However, recent efforts to reset Disney’s strategy, including introducing an ad-supported tier for Disney+ and cracking down on password sharing, have begun to pay off, with the streaming division turning a profit last quarter.
Potential Successors Emerge
As the search for Disney’s next CEO intensifies, several internal candidates have emerged as potential successors. Dana Walden, co-chair of Disney Entertainment, is often mentioned as a top contender. Walden joined Disney following the acquisition of 21st Century Fox and currently oversees Disney’s television studios, making her a strong candidate, especially given Iger’s emphasis on revitalizing Disney’s content business.
Alan Bergman, who leads Disney’s film and studios division, is another internal contender. Having been with Disney since 1996, Bergman brings extensive experience and a deep understanding of Disney’s creative pipeline, which could be crucial in navigating the company’s future content strategy.
Other names frequently discussed include Josh D’Amaro, head of Disney’s parks and experiences division, and Jimmy Pitaro, chairman of ESPN. Both have shown strong leadership within their respective divisions, especially as Disney expands its direct-to-consumer streaming offerings. Notably, Pitaro has been instrumental in ESPN’s transition to a standalone streaming service, set to debut in 2025.
The Importance of Getting It Right
For Disney, getting the CEO succession right is not just about finding a capable leader; it’s about ensuring the company remains a powerhouse in the entertainment industry. The lessons learned from the Bob Chapek experience have undoubtedly influenced Iger’s approach this time around. As Third Bridge analyst Jamie Lumley pointed out, “Iger wants to do it right this time around… he really wants to make sure the business is in the right position with the right person leading it.”
With over two years remaining on Iger’s contract, Disney has some time to make this critical decision. However, the effective deadline for announcing Iger’s successor may come much sooner, as the company seeks to stabilize its content operations and reassure investors.
Conclusion
The Disney CEO succession process is under intense scrutiny, as the company faces a pivotal moment in its history. Bob Iger’s commitment to finding the right successor is clear, but the challenges ahead for Disney make this decision more critical than ever. With potential internal candidates like Dana Walden, Alan Bergman, Josh D’Amaro, and Jimmy Pitaro in the running, Disney’s future leadership could shape the company’s trajectory for years to come. Investors and industry observers alike will be watching closely as Disney navigates this high-stakes transition.
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