Major shakeup at Disney: New chair named, CEO replacement coming soon

Disney is navigating major changes in entertainment as streaming, led by Disney+ turning profitable, thrives, while the movie industry faces a downturn

Disney is set to welcome its fourth board chair in just over three years, as the media giant continues to navigate a turbulent industry landscape. Current chairman Mark Parker will step down at the end of the year, with Morgan Stanley CEO James Gorman taking over the role in early 2025, the company announced on Monday.

“I am honoured and humbled to have the opportunity to serve as Disney’s chairman at this important moment in the company’s history,” Gorman said in a statement.

Parker, who has been a board member for nine years, only took up the chairmanship last year, succeeding Susan Arnold. Arnold served as chair for just over a year before her term expired and had been on Disney’s board for a decade and a half.

 

A major responsibility for Gorman will be to pick Disney’s next chief executive officer (CEO) to replace Bob Iger. The company said Iger’s successor will be named in early 2026. Iger, who returned to the role of CEO last year following a short hiatus, extended his contract through 2026. Though he initially stated he would serve no more than two years, the extension will see him helm Disney for at least four years in his second tenure.

Gorman, currently the chair of Disney’s succession planning committee, is already involved in the search for Iger’s replacement, which he described as “critical” to the company’s future. The committee’s decision to set an early 2026 date reflects Disney’s desire to give ample time to find the right candidate amidst the company’s ongoing challenges.

Navigating industry shifts and financial pressures
 

Disney is grappling with significant shifts in the entertainment industry. While streaming has taken centre stage, with Disney+ recently turning profitable, the movie business is in decline. Additionally, traditional television is facing an uncertain future, with ESPN and ABC among the assets weighing heavily on Disney’s balance sheet. Investors have been keen to see more clarity in the succession process, prompting the decision to offer a concrete timeline for Iger’s replacement.

Several internal and external candidates are under review for the CEO role, including Disney Entertainment co-chairs Dana Walden and Alan Bergman, ESPN Chairman Jimmy Pitaro, and Disney Experiences Chairman Josh D’Amaro. The board, however, has indicated that the search remains ongoing.

In his statement, Parker expressed confidence in Gorman’s leadership, emphasising his experience and role in the CEO search process. “James Gorman is an esteemed leader who has become an invaluable voice on the Disney board since joining earlier this year, and I am extremely pleased that he has agreed to assume the role of chairman upon my departure,” Parker said. “Drawing on his vast experience, James is expertly guiding the extensive search process for a new CEO, which remains a top priority for the board.”

Meanwhile, Disney faces additional challenges as its latest earnings report pointed to underwhelming spending by visitors to its US parks, a sign of broader economic jitters. Still, the company remains optimistic about Gorman’s ability to steer Disney through these choppy waters.

The Iger dilemma

Bob Iger’s tenure as CEO has been marked by numerous contract extensions and shifting departure plans, earning him the reputation of being the CEO who cried wolf. After initially stepping down in early 2020, just before the Covid-19 pandemic, his successor Bob Chapek’s troubled leadership saw Iger return to the role in 2022, promising a quick exit once a replacement was found. However, Iger remains at the helm as Disney continues its recovery.

During his current stint, Iger has secured several key wins for Disney, including resolving a high-profile labour dispute with directors, actors, and writers, quashing a boardroom battle, and bringing Disney+ to profitability. For these achievements, Iger’s departure has remained elusive, and his influence at the company continues to grow.

Iger’s return has stabilised Disney after several rocky years, with the company’s stock regaining some ground in 2024. However, Disney’s challenges are far from over. While the company has made strides in streaming, its traditional media assets continue to face stiff competition from TikTok, YouTube, and Netflix, and investors remain cautious.

Although Iger insists he is focused on building the Disney of the future, the company’s struggles persist. On the day Disney finally reported streaming profits, its stock saw its worst performance in over a year. And while recent earnings have been strong, lukewarm results from Disney’s parks division have dampened enthusiasm on Wall Street.

The search for Iger’s successor will define Disney’s next chapter, but with the complexities facing the company, Iger’s task of ‘fixing’ Disney is still ongoing.