Disney Eliminates Bob Iger’s Succession Candidates, Scraps New CEO Plan

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A person in a Mickey Mouse Disney costume peeking out from behind a wooden door, next to a man in a suit giving a speech.

Credit: Edited by Inside the Magic

As many continue to wonder what will happen when it comes to the future of The Walt Disney Company in regards to CEO Bob Iger, more news has just been announced.

A man in a suit stands smiling next to Mickey Mouse, who is dressed in a red tuxedo and holding a Chinese flag. They are in front of a backdrop with logos for Mickey's 90th Special, Disney, and ABC.
Credit; Disney

As we recently shared, Disney has officially announced that James Gorman will replace Mark Parker as the company’s chairman starting in January 2024, as the media giant begins the crucial process of selecting a successor for CEO Bob Iger.

Gorman, a seasoned executive with experience in leadership transitions, was appointed to Disney’s board less than a year ago and became the head of the succession planning committee in August. His upcoming role as chairman will see him continue to oversee this critical process.

Iger expressed confidence in Gorman’s leadership, stating, “The Disney board has benefited tremendously from James Gorman’s expertise and guidance, and we are lucky to have him as our next chairman—particularly as the board continues to move forward with the succession process.”

Iger also extended gratitude to Parker, the outgoing chairman and Nike Executive Chairman, for his nine years of service on Disney’s board.

With Parker stepping down to focus more on his responsibilities at Nike, including his work with newly appointed Nike CEO Elliott Hill, Disney is preparing for what could be one of the most significant leadership transitions in its history. Iger is slated to step down by the end of 2026, marking the end of a remarkable tenure that has seen the company grow into a media powerhouse.

A Delayed Succession Process

Bob Iger and Bob Chapek in front of the Millennium Falcon in Star Wars: Galaxy's Edge
Credit: Disney

Initially, Disney aimed to announce Iger’s successor by 2025, but that timeline has now been extended to early 2026. The extra time is intended to allow the board to thoroughly vet both internal and external candidates. This delay may help ensure a smoother transition, but it also prolongs the uncertainty surrounding Disney’s leadership—a situation the company has struggled with in recent years.

The importance of getting the succession right cannot be overstated, especially given the company’s tumultuous experience with Bob Chapek, Iger’s first handpicked successor.

Chapek’s tenure, which began in February 2020, was marked by a series of public and internal missteps that ultimately led to his ouster in November 2022.

Chapek’s leadership was fraught with challenges, from the mishandling of Disney’s response to the COVID-19 pandemic to controversies surrounding the company’s stance on Florida’s “Don’t Say Gay” bill, which angered employees and cast a negative spotlight on Disney’s corporate values.

Chapek also faced significant backlash for his management style. He was seen as prioritizing financial results over creativity, which drew criticism from both the creative community within Disney and long-time industry observers.

Under his leadership, Disney’s relationships with key creative partners frayed, with reports indicating that top talent felt sidelined by the company’s increased focus on streaming revenue over traditional box office and creative output. The internal discontent became so pronounced that it forced the board’s hand, leading to Chapek’s sudden dismissal just shy of three years into the role.

Disney shareholders and employees alike were left frustrated by Chapek’s tenure, and Iger’s return to the CEO role was widely welcomed. Iger has been a central figure at Disney for decades, known for his strategic acquisitions of Pixar, Marvel, Lucasfilm, and 21st Century Fox, all of which solidified Disney’s dominance in entertainment.

However, despite Iger’s return, the company still faces numerous challenges, including streaming competition, box office struggles, and theme park operations—all of which heighten the pressure for a smooth leadership transition.

Gorman’s Role in Shaping the Future

Bob Iger with Iron Man and the Mandalorian
Credit: Inside the Magic

James Gorman, who has extensive experience in succession planning from his time at Morgan Stanley, is now tasked with ensuring that Disney doesn’t repeat the mistakes of the past.

He successfully oversaw the leadership transition at Morgan Stanley when Ted Pick replaced him as CEO, a process that was widely regarded as orderly and efficient. Gorman will be expected to bring that same level of discipline and foresight to Disney’s succession planning.

Since taking over as chair of Disney’s succession committee in August, Gorman has reportedly already conducted interviews with Iger’s direct reports. These include ESPN Chairman Jimmy Pitaro, Disney Experiences Chairman Josh D’Amaro, and Disney Entertainment Co-Chairmen Dana Walden and Alan Bergman—all of whom are considered potential internal candidates to succeed Iger.

The company is also exploring external candidates, although no names have been publicly mentioned.

In a March interview with CNBC, Gorman emphasized that the process Disney is running is “forward-looking, forward-leaning, incredibly disciplined.” His reputation for careful, methodical decision-making will likely play a crucial role in ensuring that the next Disney CEO is well-positioned to lead the company into its next phase of growth.

Iger’s Unfinished Legacy and Potential Extension

Iger has pushed back his retirement several times, extending his tenure as CEO on five different occasions. His current contract runs through December 31, 2026, but questions remain about whether Iger will once again delay his exit.

Some industry insiders have speculated that Iger’s long-standing attachment to Disney may lead him to extend his contract, though no official decisions have been made.

Activist investor Nelson Peltz brought attention to Disney’s ongoing leadership challenges earlier this year, highlighting the board’s failure to name a lasting successor as a key issue during his campaign to gain board seats. While Peltz’s efforts ultimately did not succeed, his criticisms underscored the growing concern among shareholders about Disney’s leadership pipeline.

Bob Iger looking at watch with Disney+ catalog of shows in the background
Credit: Inside the Magic

For now, Disney’s board seems committed to ensuring that the next transition is smoother than the last. With James Gorman leading the charge, the company hopes to identify a successor who can maintain Disney’s creative and financial legacy while navigating the rapidly changing entertainment landscape.

Disney’s next CEO will face considerable challenges, from adapting to the evolving streaming environment to addressing concerns within the company’s theme parks and movie divisions.

Whoever takes over will not only have to live up to the towering expectations left by Iger but also steer the company through a new era of technological and cultural shifts. The clock is ticking, and the entire industry is watching to see who will be tapped to lead one of the world’s most iconic entertainment companies into the future.

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