Disney taps Morgan Stanley's Gorman to oversee selection of Bob Iger's successor

By Bill Peters

Disney cites James Gorman's 'deep succession planning experience and long-term strategic mentality'

Walt Disney Co. on Wednesday said its board had named Morgan Stanley veteran James Gorman to head the succession-planning committee seeking a replacement for Bob Iger, who has said he will step down as the media and amusement-park giant's chief executive in 2026.

"James is a highly respected leader, and we've asked him to serve as the new chair of the Succession Planning Committee given his deep succession-planning experience and long-term strategic mentality," Mark Parker, the chairman of Disney's (DIS) board, said in a statement.

Gorman, a former chief executive at Morgan Stanley and the bank's current executive chairman, oversaw the succession process there, Disney noted. He joined Disney's board this year, and said he plans to leave his role as Morgan Stanley's executive chair by the end of the year.

The planning process at Disney is moving ahead as the company tries to turn things around at its sprawling media empire, amid changes in viewership habits and pressure for more profitability, and as higher prices for necessities show signs of weighing on demand for its parks.

It also follows churn at the top over recent years. Iger served as Disney's chief executive from 2005 to 2020. In 2022, he made a surprise return to the helm, replacing embattled CEO Bob Chapek. The company at that time said Iger was well-positioned to lead it through "an increasingly complex period of industry transformation."

Iger in November said he would "definitely" step down from the chief executive position after his contract ends in 2026, according to reports.

Disney's board formed the succession committee in January of last year in an effort to strengthen its approach to CEO changes. The company on Wednesday said the committee has met six times so far in its fiscal 2024, which began in October. The board is reviewing internal and external candidates for the role.

Shares of Disney were flat after hours on Wednesday. During the regular session, the stock finished 1.1% higher. It is up 0.5% so far this year.

-Bill Peters

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08-21-24 2018ET

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