Disney is Waiting for its New CEO as Chairman Steps Down

In a notable shift at Disney, the company is set to see its fourth board chair in just over three years, reflecting continued turbulence in the evolving media landscape. Mark Parker, who currently holds the chairmanship, will step down at the close of the year, with Morgan Stanley CEO James Gorman slated to take over in early 2025.

Gorman expressed his deep gratitude for the opportunity, acknowledging the significance of the moment as Disney faces pivotal decisions about its future. Parker, a board member for nearly a decade, took the chair position last year, succeeding Susan Arnold, whose brief tenure followed more than 15 years on the board.

One of the most pressing tasks Gorman will inherit is the search for a new CEO to replace Bob Iger. While Iger returned to Disney last year after a short break, his successor is expected to be announced by early 2026. Gorman remarked that the CEO transition is a crucial step, and the timeline signals significant progress in finding the right candidate. Parker had previously indicated that finding Iger’s replacement was a top priority when he assumed the chairmanship, yet under his leadership, the board extended Iger’s contract until 2026.

Despite Iger’s earlier statements that he would not remain at Disney beyond two years, the contract extension ensures he will continue his role as CEO for a total of four years in his latest tenure. Gorman, who currently leads the succession planning committee, has been central to the ongoing CEO search, a task made more complex by the company’s current challenges. Disney’s film business is facing growing competition from online streaming platforms, although the company’s streaming arm only recently achieved profitability. Meanwhile, the decline of traditional television networks like ABC and ESPN has added to the difficulties Iger and Disney must address.

Disney’s board and its succession planning committee have been receiving investor feedback, stressing the need for more transparency in the CEO selection process. After reviewing their progress, the committee concluded that announcing Iger’s successor by early 2026 would allow ample time to make a considered choice. Internal contenders for the role include Dana Walden and Alan Bergman, co-chairs of Disney Entertainment, ESPN’s Jimmy Pitaro, and Disney Experiences head Josh D’Amaro. However, the board is also considering external candidates.

In other developments, Disney’s most recent earnings report revealed lower-than-expected spending at its U.S. parks, which the company attributed to broader economic concerns. Despite these challenges, Disney expressed confidence that Gorman’s leadership would be instrumental in steering the company through its current difficulties. Parker praised Gorman’s contributions to the board and his leadership in the CEO search process, calling him an invaluable asset as Disney looks toward the future.

The succession issue has become somewhat notorious, with Iger repeatedly signaling his departure, only to remain in the role. In his first stint as Disney CEO, Iger extended his contract several times, finally stepping down just before the onset of the COVID-19 pandemic. His replacement, Bob Chapek, faced widespread criticism for his handling of the company and was ultimately replaced by Iger in late 2022. Despite Iger’s assurances that his second tenure would be brief, he remains at the helm, having overseen significant labor negotiations and a return to profitability for Disney+.

While Iger has helped stabilize Disney, concerns remain about the future. The company’s stock has seen a partial recovery, and Disney is once again viewed favorably in traditional media circles, though that sector is struggling against the dominance of new players like TikTok, YouTube, and Netflix. Iger has stated that his current focus is on shaping Disney’s future, though some question whether it’s too soon to declare the company’s turnaround complete. Even on the day Disney announced streaming profits, its stock fell sharply due to a cautious outlook. More recently, a strong quarterly report was overshadowed by concerns about soft earnings from Disney’s parks division.

Despite the successes Iger has notched, it remains to be seen how Disney will navigate the rapidly changing entertainment industry.

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