Inside Disney’s Race to Replace Bob Iger

The Walt Disney Company is betting that James Gorman can pull off two in a row.

The former Morgan Stanley CEO carried out what is considered one of the smoothest succession processes in recent corporate history: He announced his plans to exit the investment bank in May. It was revealed that three internal candidates are in the fray. Chosen One (Ted Pick); And did so by keeping others in company after it was over.

Gorman will become chairman of Disney’s board in January, with his top priority being finding a successor to CEO Bob Iger, targeting a decision in “early 2026.”

That’s no easy task, when it’s been two years since Iger returned to the company and promised to once again figure out a successor, with a contract extension that keeps him at Disney until 2026.

“What you have right now is a very powerful CEO, but whoever succeeds him in that role is going to be a very powerful person,” says Henning Pizonka, an associate professor of management at the Wharton School of Business at the University of Pennsylvania. would not enjoy the same informal power.” . “In that sense, it’s a somewhat thankless job to fill: while formally you occupy exactly the same position, informally your power base is very, very different.”

And while the last time Disney chose a new CEO, it was by all accounts a call from Iger to name Bob Chapek as his successor, this time the board is very, very busy, and has a lot to find. So there is no dearth of strategies and candidates. Here’s a closer look at some of Gorman’s options for the search process:

Need More Spice: 5-1 odds

Gorman’s assertion that Disney is targeting a 2026 CEO announcement suggests that the board thinks internal candidates — including Dana Walden, Josh DeMaro, Jimmy Pataro and Alan Bergman — can take over now. Not ready at all. But the 2026 date doesn’t mean Disney can’t make a move in 2025.

The company may very well move some executives around, changing oversight and responsibilities and giving potential successors experience in other parts of the company. Disney tried this a decade ago with Tom Staggs and Jay Rasullo, who swapped jobs as CFO and head of parks (it didn’t work out at the time), but with a number of internal candidates, seeing The only way might be to see who has the chips. to run such a multifaceted company and give them an opportunity to prove their mettle outside their current comfort zone.

Promoting an internal solo CEO: 8-1 odds

Maybe the delay to 2026 is just an opportunity for internal candidates to prove themselves? Next year, after all, will be an important year for the company. Consider: Disney’s streaming entertainment business needs to prove it can be meaningfully profitable. His film business needs to prove that this year’s turnaround is real. ESPN is set to launch a “flagship” streaming service. And Disney’s parks need validation that the slowdown that began this year is short-lived, as the company begins to pour its $60 billion investment into the division. If one of the crew excels in their execution, it can put them over the top.

Gorman and the board may also take a closer look at the criteria the next CEO needs, which could give an edge to one internal candidate or another, Pizonka says.

“To me, that’s an interesting question here: What exactly are the criteria? What does Disney’s next CEO actually need to be good at?” he says. Is the future going to be parks? Is the question going to be streaming? Is the primary benefit, so to speak, of managing these relationships with the stars? I think they must be really thinking about what does this person actually need to do?

Bringing in an outsider as CEO: 10-1 odds

Disney’s culture is very specific … can an outsider run it successfully? Is there anyone who is capable of running a company like Disney who is not an insider? At the D23 conference in Anaheim in August, Iger was treated like a celebrity on the show floor, as die-hard Disney fans sought selfies with the CEO, underscoring the unique role he plays. Involved in work.

The Disney succession committee — chaired by Gorman — says it continues to evaluate both internal and external candidates, suggesting the possibility remains alive. The only outside candidate leaked so far was NBA commissioner Adam Silver, who met with the board last year, but with a target date of 2026, candidates from other companies could become available with upcoming contract renewals. Would NBCUniversal’s Donna Langley, for example, be interested? How about Ted Sarandos? “It’s not even on my mind,” he told the WSJ Tech conference on Oct. 22. It’s not at all.

Netflix Outlook: Co-CEO: 25-1 odds

Netflix has two CEOs, why not Disney? Well, for starters, Netflix co-CEOs Sarandos and Greg Peters have very different areas of expertise and focus, and Sarandos says the “respect” they have for each other makes them Allows elimination of decisions that need to be made at the CEO level. .

“It’s hard for me to recommend a program to another company where I don’t really understand their business, and in turn, their business culture,” Sarandos said of Disney’s eponymous co-CEO. He said when asked.

Still, for a company as multifaceted and diverse as Disney, the idea isn’t crazy. One CEO focused on the “creative engines” of film and TV studios (looking at you, Dana), and another focused on the operations of Parks and Experiences (Hi, Josh), including E. Includes SPN, Marketing, Finance, etc. , split between them, can mean a certain amount of … if candidates are open to the idea of getting hired for less than Egger. Although Wharton’s Piezunka notes, a co-CEO strategy “would almost certainly go against Disney’s business model, always striving for integration.”

Bob Iger extends his contract: 200-1 odds

Iger’s shadow casts a shadow over the entire Disney succession drama. Despite not having experience in all aspects of business, he took the top job in a dramatic, public process 20 years ago. But Chapek’s decision looms large. Egger himself says he is conducting an autopsy to determine what went wrong. Iger has extended his contract so many times over the years that it’s tempting to think the board would be willing to do so again soon. But Gorman’s rise is reason to think otherwise. “It does [Iger] A second chance to get it right? I think it’s going to be an interesting question, to what extent would James Gorman say ‘You know what? I own the process,” says Pizonka. The company has two years to earn the right of succession, and despite Iger’s past extensions, there’s good reason to believe there won’t be another. Agger, for his part, says he “definitely” intends to leave when his current deal expires.

Screw it, let’s sell or merge: 500-1 odds

What if Gorman couldn’t find a suitable candidate to succeed Egger? Would a company that has always been a buyer … consider selling? It’s not completely crazy. In his 2019 autobiography, Iger suggested that a deal with Apple was something he had considered.

“I’m sure if Steve [Jobs] Were we still alive, we would have merged our companies, or at least discussed the possibility very seriously,” Iger wrote. Of course that was then, this is now. Apple and Disney are frenemies (partners on Vision Pro , but Disney ended the practice of allowing users to subscribe to the Disney+ in-app on iOS devices.) And there are few buyers outside of big tech who can afford a company like Disney , it looks like they come out of the Marvel Multiverse.