The Walt Disney Company announced significant leadership changes on Monday.
The conglomerate will appoint James Gorman, former CEO of Morgan Stanley, as Charman of the Board, effective January 2, 2025. He will replace Mark Parker, who has served on the board for nine years.
Disney’s decision to name Gorman as its new Charman comes as the entertainment conglomerate looks for a successor to its current CEO, Bob Iger, whose contract extends through the end of 2026.
Iger was CEO from 2005 to 2020, helping spearhead several acquisitions, including Pixar, Marvel, Lucasfilm, and 21st Century Fox. Under his leadership, the company also launched its streaming service, Disney+. During his tenure, the company’s market capitalization more than quadrupled.
In 2020, Iger stepped down, and Bob Chapek replaced him as chief executive. However, because of strategic challenges, Iger returned as CEO in late 2022. The board made this decision to help the company stabilize and prepare for a new CEO by the end of Iger’s agreed-upon contract. It should be noted, Iger said last year that he will “definitely step down” after his contract expires.
This is where Gorman’s expertise plays a role. As the former CEO of Morgan Stanley, he has vast experience in managing complicated organizational changes.
Smooth leadership transition is paramount
Disney’s priority is a smooth and optimal leadership transition in plan before Iger’s departure in 2026.
“A critical priority before us is to appoint a new CEO, which we now expect to announce in early 2026. This timing reflects the progress the Succession Planning Committee and the Board are making, and will allow ample time for a successful transition before the conclusion of Bob Iger’s contract in December 2026,” Gorman said.
Iger commented: “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.”
Adding: “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.”
Disney has a lot of challenges under its belt. The company is facing declining television revenue, streaming profitability and soft consumer spending at its US theme parks.
A Critical Juncture for Disney
Disney needs to find stability and a strategy for its core businesses. While Disney+ has seen subscriber growth, it still needs to be improved. The streaming service is not profitable yet. It recently hiked prices and implemented a crackdown on password sharing, like Netflix implemented.
There have also been some hiccups in box office releases, namely Indiana Jones and the Dial of Destiny and Ant-Man and the Wasp: Quantumania. The films underperformed, raising concerns about Disney’s ability to deliver content consumers want to watch.
Gorman’s appointment is a promising move. However, the true test will lie in the ability to find a successor to Iger who knows how to manage an entertainment conglomerate as uncertainty heightens regarding traditional media, the success of its streaming service, and theme park operations.