Behind the red carpet movie premieres and new thrill-inducing rides for fans of its amusement parks, there is a quiet search underway to find the successor to Bob Iger, the face of Disney for most of the past two decades.
Disney went through the CEO search recently, and it was nearly a disaster.
Only two years after stepping down as CEO, Iger returned to Disney in 2022 after a period of clashes, missteps and a weakening financial performance under his hand-picked successor, Bob Chapek.
But how do you replace a chief executive who is considered by many to be the gold standard?
Iger strengthened the Disney brand through his acquisitions of Pixar, Marvel and Lucasfilm, oversaw the expansion of the company in China and India and had a laser-like focus on technology that both made the Disney product better, and more accessible. Iger, at the same time, is approachable, media savvy and has deftly managed a company that is like no other.
Under Disney's umbrella are theme parks, movies studios and streaming technology, all with priorities seemingly at odds with each other, or at least vying for the attention of the company's chief executive.
The question of who can follow Iger will clearly be on the minds of investors as Disney kicks off its annual shareholders meeting on Thursday.
Disney created a succession planning committee in 2023, but the search began in earnest last year when the company enlisted Morgan Stanley Executive Chairman James Gorman to lead the effort.
Gorman said in a January letter to shareholders that the committee had made “strong progress” over the past year.
“The full board is engaged in and committed to finding the right leader for the company and we are planning for a smooth leadership transition that will enable Disney’s continued success,” he wrote.
Disney does has the benefit of time. After signing a two-year contract mostly to right Disney’s trajectory after a rocky two years under his hand-picked successor, Iger agreed to a contract extension that keeps him at Disney through the end of 2026.
Disney declined to comment on its succession planning efforts.
It is a broad search. Disney is looking inside and outside of the company. Internal candidates are being mentored by Iger, interacting with the company's 15 board members (including Iger) and receiving external coaching.
The internal candidates are widely believed to include the chairman of Disney-owned ESPN, Jimmy Pitaro, Chairperson of Walt Disney Parks and Resorts Josh D'Amaro, Disney Entertainment Co-Chairman Alan Bergman and Disney Entertainment Co-Chairman Dana Walden.
Individuals on that short list are notably more visible at a time in which Iger has taken a bit of a step back from pubic appearances. Walden appeared at the Morgan Stanley Technology, Media & Telecom Conference this month to speak about varying components of the business.
“Disney is a great technology company and a great storytelling company,” she said. “We have moved forward significantly throughout time, embracing technology as a vital tool to deliver these stories.”
Bergman and D'Amaro showed up at the South by Southwest festival this month to discuss collaborative efforts taking place at Disney.
Given the complex and unique nature of Disney, many expect the next leader of the company to come from within.
"Internal candidates make sense when a company doesn’t need a major shakeup and when the bench of potential candidates is deep," Jason Schloetzer, associate professor at Georgetown McDonough School of Business, said.
Henning Piezunka, associate professor of management at Wharton Business School of the University of Pennsylvania, agrees.
“The challenge for Disney – but also the beauty of it, is that it is a somewhat unique company,” he said. “While it is very feasible for Ford to recruit from GM, and for Volkswagen to recruit from BMW, it is less evident what is an equivalent for Disney. So, it is harder for an external CEO to hit the ground running.”
Yet is there anyone on Disney's roster that can oversee parks, films and streaming as adeptly as Iger has?
Schloetzer said that Walden’s experience in television and streaming positions her well for the CEO post, although she lacks experience with the company's theme parks.
With D'Amaro, Disney has someone who has been with the company for almost 30 years and who has deep experience with the theme park division, he said.
“Ultimately, the choice will probably come down to which candidate the board feels most comfortable working with and who can motivate the next level of executives to push the company forward,” Schloetzer said.
Disney has been energized of late. The company was buoyed in its first quarter by the strong box office performance of “Moana 2” and subscriber growth at Disney+ and Hulu.
Michelle Chapman, The Associated Press
