Disney says it will pick Bob Iger’s successor in early 2026
Walt Disney Co. on Monday said it now aims to name Chief Executive Bob Iger‘s successor in “early 2026,” later than many observers previously expected.
The Burbank-based entertainment giant disclosed the updated plan Monday as it named James P. Gorman chairman of its board of directors, replacing Nike Chief Executive Mark Parker, who is leaving in January after nine years.
Gorman, executive chairman of Morgan Stanley, chairs the Disney board’s succession planning committee, which is working to identify and prepare the company’s next leader before Iger’s contract expires.
Gorman was named to the board this year and has prior experience in succession planning because he chaired the process at Morgan Stanley, Disney has said. He will leave his role at the financial services firm at the end of December.
“They need someone really credible to chaperone the process, who’s gone through this before,” said Laurent Yoon, senior analyst at Bernstein. “Gorman’s name carries a lot of weight in that sense.”
In a statement, Gorman said the new timing of the succession pick “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.
Walt Disney Co. needs to choose a replacement for CEO Bob Iger. The company has four clear internal candidates: the unit heads who run the film, TV, sports and parks divisions.
Gorman’s new role is a sign to investors that Disney’s board is making the succession planning process one of its highest priorities.
“You’ve got to have CEO succession well thought out, understood, vetted, checked and have some time for the transition process,” said Ric Prentiss, managing director at financial services company Raymond James. “It gives the board time to do their work and find the right person to make sure this time, it sticks.”
The board’s succession planning committee, in addition to Gorman, includes General Motors CCEO Mary Barra, Lululemon Athletica CEO Calvin McDonald and Parker until his departure. The committee met six times in fiscal 2024, and the board discussed succession planning at each of its regularly scheduled meetings in fiscal 2024, the company said.
“Drawing on his vast experience, James [Gorman] is expertly guiding the extensive search process for a new CEO, which remains a top priority for the Board,” Parker said.
The question of who will succeed Iger has been the subject of much drama inside Disney in recent years. Iger returned to lead Disney in November 2022 after less than a year to replace his handpicked successor Bob Chapek, who was ousted by the board after a number of setbacks during his nearly three years as chief.
Disney’s board gave Bob Chapek a three-year contract extension in June. Five months later, the board replaced him with predecessor Bob Iger. What happened?
Upon his return, Iger moved swiftly to cut costs and eliminated thousands of jobs across the company. He also directed the company to slow down production of films and TV shows to focus on quality, a turnabout from how Disney was rapidly churning out content for its streaming service.
But the bungled succession planning with Chapek continued to haunt him, eventually becoming a major point of contention in activist investor Nelson Peltz’s bitter proxy fight to join Disney’s board. Though Peltz’s effort ultimately failed, analysts said, his challenge indicated that Disney had to get its next CEO pick right.
Iger too is taking an active hand. The company has said that he is mentoring internal candidates, and that those potential picks are also receiving external coaching and interacting with all board directors as part of the preparation process.
Disney Entertainment Co-Chair Dana Walden, fellow Entertainment Co-Chair Alan Bergman, parks, products and experiences Chair Josh D’Amaro and ESPN boss James Pitaro are all seen as potential internal successors.
Naming a replacement in 2026, which is later than expected, “signals, ‘We need to evaluate some potential candidates within the company and probably within the C-suite, as well as some people outside the company,’ ” Yoon said.
It also gives the board time to see how internal candidates deal with challenges on the horizon.
In May, Universal Orlando Resort will open its new theme park, Epic Universe, which is expected to be a major competitor to Walt Disney World. Disney also needs to continue growing its streaming business while managing the decline of its major linear TV assets.
“It’s always the question of, do you pick a leader from the parks or from the entertainment business?” said Brent Penter, associate analyst at Raymond James.
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