The Walt Disney Firm Board of Administrators has named James P. Gorman as its new Chairman, efficient January 2, 2025. He succeeds Mark G. Parker, who’s departing after 9 years of service. This submit shares particulars of the announcement, a succession planning replace, plus our ideas.
Gorman joined Disney’s board lower than a yr in the past and in August was named the Chair of the Disney Board’s Succession Planning Committee, which is working to determine and put together the subsequent chief government officer of The Walt Disney Firm. He’ll proceed to guide that committee after he takes over as board chairman from Nike Govt Chairman Parker. Gorman is presently Govt Chairman of Morgan Stanley and, as beforehand introduced, will probably be stepping down from that position on December 31, 2024.
As for Mark Parker, he was named Chairman of the Board simply two years in the past, succeeding Susan E. Arnold, who was ineligible for re-election pursuant to the 15-year time period restrict underneath Disney’s Board Tenure Coverage. You may also acknowledge Parker’s title from the Battle of the Bobs/Bob Swap drama, as he was floated as an interim Disney CEO when the board first realized it had made a horrible mistake with Chapek and was getting ready to oust him.
“James Gorman is an esteemed chief who has develop into a useful voice on the Disney Board since becoming a member of earlier this yr, and I’m extraordinarily happy that he has agreed to imagine the position of Chairman upon my departure. Drawing on his huge expertise, James is expertly guiding the in depth search course of for a brand new CEO, which stays a high precedence for the Board,” stated Parker, who’s Govt Chairman of NIKE, Inc.
“As I put together to depart the Board to give attention to different areas of my work, I’m happy with Disney’s renewed place of power and excited for the corporate’s future, and I need to thank my fellow administrators, Bob Iger and his exemplary administration group for his or her continued robust management and dedication.”
It’s unclear what “give attention to different areas of my work” actually means, however our guess is that this isn’t code, like “stepping all the way down to spend extra time with my household.” Nike simply named a brand new CEO and has been struggling to maintain forward of its nascent opponents, amongst different issues, so maybe Parker is required there.
“The Disney Board has benefited tremendously from James Gorman’s experience and steering, and we’re fortunate to have him as our subsequent Chairman – notably because the Board continues to maneuver ahead with the succession course of,” Iger stated. “I’m extraordinarily grateful to Mark Parker for his a few years of Board service and management, which have been so invaluable to this firm and its shareholders, and to me as CEO.”
“I’m honored and humbled to have the chance to function Disney’s Chairman at this necessary second within the firm’s historical past,” Gorman stated. “Within the quick time I’ve had the chance to work with Mark, I’ve come to understand and deeply respect his genuine management, humility and intelligence. I do know all Administrators be a part of me in saying we now have been honored to serve with him because the Chairman of the Board.”
“A important precedence earlier than us is to nominate a brand new CEO, which we now anticipate to announce in early 2026. This timing displays the progress the Succession Planning Committee and the Board are making, and can enable ample time for a profitable transition earlier than the conclusion of Bob Iger’s contract in December 2026,” Gorman stated.
Bob Iger’s successor being introduced in early 2026 is de facto the huge information of the announcement–therefore it being the headline and never Gorman taking up the position. Bob Iger’s contract was prolonged final summer time by means of the tip of 2026, with succession planning being an emphasis. Extra not too long ago, there have been experiences that Disney’s subsequent CEO will probably be named in late 2025. This doesn’t essentially replicate a delay–we’d anticipate the particular person to be named internally (and that subsequently leak to media) earlier than there’s an official public-facing announcement.
As famous above, Gorman is Govt Chairman of Morgan Stanley and will probably be ceding this position in December 2024. Beforehand, Gorman served as Morgan Stanley’s Chief Govt Officer from 2010 to 2023 and Chairman from 2012 to 2023. He joined the agency in 2006 and was named Co-President in 2007.
Earlier than becoming a member of Morgan Stanley, Gorman held government positions at Merrill Lynch and was a senior companion at McKinsey & Co. He serves as a Director of the Council on Overseas Relations and is a member of the Enterprise Council. He previously served as a Director of the Federal Reserve Financial institution of New York and President of the Federal Advisory Council to the U.S. Federal Reserve Board. Gorman has been a Director of the Firm since 2024.
I don’t need to make a snap judgment on somebody I don’t know something about, however Gorman’s credentials don’t precisely instill confidence. Certain, he’s well-credentialed and really spectacular on paper. Definitely extra completed than “amateur-grade Disney blogger.” However these very spectacular positions don’t precisely translate to selecting a brand new chief for the world’s foremost artistic firm.
I imply, c’mon, McKinsey is basically the antithesis of that. No offense to McKinsey consultants studying this. (Let me guess–I may enhance this weblog by shedding 40% of the employees? Unsure how that will work with 60% of a Tom, however in all probability couldn’t get any worse!) I additionally actually favored Mark Parker, who appeared like an excellent match to guide the search.
Within the curiosity of equity, Morgan Stanley did reward Gorman’s “exemplary execution of CEO succession planning.” And as soon as once more, I do know completely nothing concerning the man. He’s undoubtedly extraordinarily clever, and maybe he “will get” Disney and what is going to make CEO for the distinctive firm. Each time it involves the sort of factor, I simply fear that outsiders received’t take Parks & Resorts significantly, as a substitute viewing them as frivolity for kids or an asset to be squeezed.
Iger’s 4 direct experiences are broadly rumored to be the candidates who’re being significantly thought of as his successor. This contains ESPN Chairman Jimmy Pitaro, Disney Experiences Chairman Josh D’Amaro, in addition to Disney Leisure Co-Chairmen Dana Walden and Alan Bergman.
Reviews point out that each one have already begun the interview course of with the succession planning committee, and that D’Amaro and Walden are the front-runners. I don’t know the way significantly these experiences needs to be taken. I do know completely nothing and I’d’ve guessed that D’Amaro and Walden can be front-runners just by advantage of their positions, public appearances, and different variables.
Previous to this, Iger prolonged his tenure as CEO after planning to retire on 4 totally different events between 2013 and 2017. He then retired with out warning, and subsequently returned abruptly. Effectively, shock isn’t actually the appropriate phrase. Numerous commentators predicted his return, together with this weblog.
If something, this information is extra shocking than something prior to now, as a result of it displays how succession planning for an organization like Disney ought to be accomplished. It seems to be methodical and thorough, which is already a pointy distinction to how the naming of Chapek went, if latest experiences are to be believed. (And there’s no cause to not consider them given they stunning nicely monitor what performed out in public view.)
My emotions on this are a bit sophisticated. I’ve largely coated this elsewhere, so I’m not going to fixate on it right here. To make an extended story (largely) quick, I feel that Bob Iger has been round too lengthy and that Disney wants contemporary blood. The entire Batman ‘you both die a hero or stay lengthy sufficient to see your self develop into the villain’ kinda deal, however much less excessive. He did an excellent job up till the Fox acquisition, with unforced errors since, together with his personal succession planning (or lack thereof).
With that stated, the Walt Disney Firm is at an inflection level and there’s large turmoil within the legacy media area. It’s a novel and complicated company and there’s nobody higher than Bob Iger to repair and issues (even these he created not directly by appointing Chapek). I think it’ll take till 2025 for Disney to emerge from the storm.
The runway by means of 2026 gives Iger the prospect to cement his legacy; it additionally provides his successor sufficient runway for a clear break, and never having to be tarnished by the robust choices that’ll be made now and within the subsequent 18 months. It appears win-win to me.
Most critically for me–and it is a new improvement–Bob Iger sticking round by means of 2026 and his successor not being named till the start of that yr provides Parks Chairman Josh D’Amaro loads of time to get “shovels within the floor” and significant progress made on every little thing introduced at D23.
Whereas I’m heartened by D’Amaro’s bulletins on the D23 Expo and the emphasis on these tasks already being in movement and opening throughout the subsequent 5 years, I’m not fully satisfied that’s true. There’s extra certainty about these tasks than what was introduced (and subsequently cancelled) in 2019 or the non-announcements in 2022, however that also doesn’t make them 100%.
As we’ve mentioned elsewhere, all it takes is a regime change to derail tasks that aren’t sufficiently far alongside in development. New leaders like to make their mark on theme park tasks, in methods each good and unhealthy. So let’s say that, for instance, Villains Land in Magic Kingdom or Pandora in Disney California Journey are solely cleared parcels of land in late 2026.
Let’s additional assume, for the sake of this hypothetical, that Dana Walden will get the nod as CEO. There’s nothing to then say that she loves Avatar as a lot as Iger or thinks villains are match for Magic Kingdom. These tasks may get shelved or cancelled totally. I’m not saying they’ll–simply that the chances improve in such a situation of any tasks that aren’t already vertical.
There’s little to no danger of this if D’Amaro is known as CEO, as that will primarily be continuity with the present Parks & Resorts regime. There could also be little issues over which he and Iger disagreed, however I can not see him cancelling a whole land or altering the course of a challenge totally. (Earlier than any of you get excited concerning the constructive flip aspect of this, the Rivers of America and no matter Monstropolis replaces are lengthy gone earlier than late 2026. A brand new CEO isn’t going to “save” something–simply delay improvement of empty land.)
In the end, that is additionally why I’d prefer to have somebody from Parks & Resorts function CEO of the Walt Disney Firm. Proper now, that will be Josh D’Amaro. Actually, I’m turning into much less and fewer bullish than I’ve been on D’Amaro since he got here aboard Disney, largely as a result of I don’t suppose his monitor document on accomplished tasks is something to put in writing dwelling about. He doesn’t actually have plenty of constructive tasks that he can personal as his personal–the successes have been all inherited from Chapek’s time as head of Parks & Resorts.
Nonetheless, I’d fairly have D’Amaro over the options for the straightforward cause that he’s a “Parks Man.” Not solely that, however I’d prefer to consider that his arms have been tied by the streaming woes and every little thing else, so treading water for a couple of years was the very best case situation. However it’s laborious to take a look at the tip results of the World Celebration at EPCOT overhaul and nonetheless draw that conclusion.
On a constructive notice, we’ve heard a lot about D’Amaro from previous colleagues and Solid Members–and nonetheless need to offer him the good thing about the doubt based mostly on that. Individuals who have labored with him–and never simply frontline Solid Members who’ve superficial encounters–recommend that he’s the actual deal. That D’Amaro is somebody who really “will get” Walt Disney World and Disneyland, cares about Solid Members and the visitor expertise, and would advocate for theme parks.
The underside line is that I need to see somebody–anybody–come from the Parks & Resorts aspect of the enterprise. I need that to be the corporate’s focus. That’s my private bias. It might be good to have a CEO who got here up by means of the parks and understands their significance to the corporate’s artistic legacy–and never simply because the goose(s) that lay golden eggs. Whether or not that’s Josh D’Amaro, the triumphant return of Tom Staggs, or some thriller third candidate–I’ll take them over anybody from ESPN or the studios.
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OUR THOUGHTS
What do you consider Disney naming Bob Iger’s successor as CEO in early 2026? Are you content, disenchanted, or detached in the direction of the information? Acknowledge this as a ‘needed’ transfer even when you’re not wild about it? Who do you suppose will probably be CEO of the Walt Disney Firm on January 1, 2027? Will it’s Bob Iger (nonetheless), Tom Staggs, Kevin Mayer, Josh D’Amaro, Dana Walden, Jimmy Pitaro, Alan Bergman, or not one of the above? Who ought to it’s? Ideas on anything mentioned right here? Are you optimistic or pessimistic concerning the Walt Disney Firm’s future? Assume issues will get higher in 2025? Do you agree or disagree with our evaluation? Any questions we may also help you reply? Listening to your suggestions–even while you disagree with us–is each attention-grabbing to us and useful to different readers, so please share your ideas beneath within the feedback!
