The Walt Disney Company is one of the largest, and most prestigious companies in all of media. As a result, being the CEO who leads the house that Walt built is a job that one can imagine a lot of people would love to have. Having said that, finding somebody who is right for that job has been a surprisingly difficult affair. And according to Disney, it will be more than a year before we know who the next Disney CEO will be.
When Bob Iger returned to lead Disney following Bob Chapek’s brief run as CEO, it was made clear from the outset that Iger’s tenure would be brief, with the primary focus being finding the right successor. Today Disney announced that James P. Gorman, the executive chairman of Morgan Stanley, who is currently leading the Disney succession committee, would be taking over as Chairman of the Board of Directors on January 2, 2025. In addition, the committee does not expect to name a successor until early 2026.
2026 Seems Too Late For Disney To Name a New CEO
It’s been just under two years since the night that shocked the entertainment industry when it was announced that Bob Chapek was out as CEO of Disney and Bob Iger was returning to the role. From the beginning, it was made clear that the feeling was that the decision to give the CEO role to Chapek had been a mistake and that Iger’s main focus would be holding down the fort while a new successor was chosen.
Bob Iger’s current contract runs through the end of 2026. It’s always possible that Iger will leave early once a new CEO is named, but the more likely scenario is that once the choice is made, the final months of Iger’s time will be spent showing the ropes to the new CEO. All signs currently point to the new CEO coming from inside Disney with Experiences Chairman Josh D’Amaro and Disney Studio co-head DanaWalden widely seen as the top candidates.
The problem I see with waiting more than a year is that a lot can happen in that time. If the race for CEO is truly between D’Amaro and Walden, any other company looking for a CEO might consider either of them and if another organization comes along with a deal too good to turn down, Disney could lose their best options if they wait too long to make a deal.
There’s an argument to be made that the only reason Bob Chapek was chosen as CEO in 2020 was because he was the only one left. Several others who likely would have been in the running, including former Disney COO Tom Staggs, had left the company for greener pastures previously. The longer the CEO search takes, the more likely something like that could happen again.
Could Disney’s Next CEO Come From Outside The Company?
Of course, it’s possible the extended timeline could mean that Disney isn’t too worried about its prospective candidates from inside the company leaving. That could be because Disney is seriously considering candidates from outside. If their top candidates are already CEOs elsewhere, there will be less concern that they won’t be available a year from now.
A new Disney CEO from outside Disney would be a big deal. Only once in Disney's more than 100-year history has the CEO come from outside. Michael Eisner became Disney's CEO after being the President of Paramount in 1984. While he would leave the role in 2005 after being forced out, Eisner’s experience outside the company may have also been a tremendous benefit. Eisner did a lot of great things for Disney.
Whatever happens, a lot of eyes will be on the Disney CEO job over the next year and a bit. A lot could happen in that time. Perhaps the next Disney CEO is a name that hasn’t even been suggested yet. Whoever the next CEO will be, we can stop worrying about that question for the next year because the answer isn’t coming soon.
