After a failed first attempt, Disney launches round 2 of replacing Bob Iger

Simone Del Rosario:

Disney is tapping someone with succession experience to imagine its Bob Iger-less future.

No, that experience has nothing to do with HBO and the wildly popular show called Succession. No Waystar Royco on his resume.

Disney named board member and Morgan Stanley executive chairman James Gorman to chair its succession planning committee.

And let’s be honest here, the situation at Disney has been nearly as messy as that of Waystar Royco.

For a bit of history, Iger served as CEO of Walt Disney from 2005 to 2020. He hand picked Bob Chapek to be his successor. But after a series of missteps and weak performance, Chapek was fired in 2022.

And Iger came back to save the day like a hero in one of those Disney produced Marvel films.

Bob Iger:

“We’ve had conversations about it being much more challenging than I expected. I felt that from the beginning when I came back, but I’m not daunted by it. It’s just a lot more work.”

Simone Del Rosario:

Gorman is no stranger to tough tasks. He took over as CEO of Morgan Stanley in 2010 as the bank was reeling from the financial crisis.

James Gorman:

“Some people run toward the fire to put it out and some people run away. And my instinct has always been to move toward where the drama is.

Simone Del Rosario:

Gorman served in the role until the end of 2023 and oversaw the succession process at the investment bank as Ted Pick took over.

Gorman saw his role much different than Iger, who stayed involved with Disney even after Chapek took the post.

James Gorman:

“It starts with a very basic principle. Do you, as the boss, want to leave the job? And I did unambiguously. I loved it but I wanted to stop it. But what that does is it frees you up to ensure your successor has every opportunity to succeed.”

Instead, Iger was accused of undermining Chapek at every turn.

With Iger back in business, Disney survived a proxy war this year with activist investor Nelson Peltz. Peltz took issue with the company’s succession handling and its lackluster performance in streaming.

Iger’s contract extends through 2026 this round, and he says this is for sure the end of the yellow brick road.

Andrew Ross Sorkin: Do you think in two years you really will step down.
Bob Iger: Given the list of things I have to do. Yeah, I’m definitely going to.
{ARS interrupts}
Bob Iger: We’re attacking each one of them. I’m confident we will do so successfully.

Simone Del Rosario:

Board Chair Mark Parker, who was head of the succession planning committee, will remain a member along with GM CEO Mary Barra and LuLuLemon CEO Calvin McDonald.

The committee formed in January of last year and has met six times so far in fiscal year 2024. As it tries to avoid another Chapek-like debacle, the company says, “The Committee and Board are reviewing internal candidates and external candidates. Internal candidates are going through a preparation process that includes mentorship from Disney CEO Robert A. Iger, external coaching, and engagement with all Board directors.”

While there isn’t a ton of major media conglomerate experience in the group, all of them have direct experience in CEO and leadership succession planning for Fortune 500 companies. Let’s see if Bob Iger can get his “the end” title card to stick this time.