US Markets
Monday, October 21st, 2024 6:17 pm EDT
Key Points
- Disney has appointed James Gorman as its next chairman, effective January 2024, succeeding Nike Executive Chairman Mark Parker. Gorman, who joined Disney’s board recently, will also lead the succession planning committee to find a replacement for CEO Bob Iger by early 2026.
- The timeline for naming Iger’s successor has been pushed to early 2026 to allow the board more time to assess internal and external candidates. Gorman has experience in succession planning from his time at Morgan Stanley.
- Disney’s leadership transition has been challenging, with Iger returning as CEO in 2022 after his handpicked successor, Bob Chapek, was fired. There is still uncertainty about whether Iger will extend his board role past 2026.
Disney has announced that James Gorman will replace Mark Parker as the company’s chairman in January 2024, as part of a broader plan to eventually name a successor for CEO Bob Iger by early 2026. Gorman, who joined Disney’s board less than a year ago, was named head of the succession planning committee in August and will continue to lead that role once he takes over as chairman. Mark Parker, the current board chairman and Nike’s Executive Chairman, will step down to focus more on Nike-related responsibilities.
Bob Iger expressed his gratitude for both Gorman and Parker, praising Gorman’s expertise and Parker’s leadership during his nine years on the board. The transition to Gorman as chairman is part of Disney’s efforts to ensure a smooth leadership succession, a process that has been challenging in recent years. Notably, Iger’s first handpicked successor, Bob Chapek, had a turbulent tenure, which ended in his dismissal in 2022. Iger returned to the CEO position following Chapek’s exit, and shareholders are eager for the board to finalize a long-term leadership solution.
Disney initially aimed to announce Iger’s successor in 2025 but has now pushed the timeline to early 2026, giving the board more time to thoroughly assess internal and external candidates. Gorman’s previous experience with succession planning, particularly at Morgan Stanley, where he facilitated a successful leadership transition, is seen as a valuable asset as Disney navigates this critical period. The company’s succession committee has already interviewed Iger’s top four direct reports—ESPN Chairman Jimmy Pitaro, Disney Experiences Chairman Josh D’Amaro, and Disney Entertainment Co-Chairmen Dana Walden and Alan Bergman—since Gorman took charge of the process.
Iger has faced multiple extensions of his retirement, postponing his exit five times to continue leading Disney. Activist investor Nelson Peltz recently criticized the board’s inability to secure a lasting CEO succession plan during his failed campaign to gain a board seat earlier this year. Despite the new timeline, the question of who will eventually replace Iger as CEO continues to loom over Disney. While Iger’s current contract extends until December 31, 2026, it remains undecided whether he will extend his board tenure beyond that date.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/10/21/disney-ceo-succession-plan-board-chair.html
