Disney to name CEO Bob Iger's replacement in 2026, taps Morgan Stanley's Gorman as chair

By Dawn Chmielewski

(Reuters) -Walt Disney named Morgan Stanley veteran James Gorman as chair on Monday and said it would announce a replacement for CEO Bob Iger in early 2026, announcing for the first time a timetable for succession at the storied media and entertainment company.

Gorman will step down as executive chair of Morgan Stanley at the end of 2024 and take on the position at Disney in January. He had served as CEO of the Wall Street bank for 14 years and is credited with transforming it into a wealth management powerhouse.

Gorman had orchestrated a CEO succession plan in which Ted Pick took the reins at Morgan Stanley, even as it retained the two other candidates, executives Andy Saperstein and Dan Simkowitz, a rarity on Wall Street.

That experience will come in handy at Disney, which was criticized by activist investor Nelson Peltz for its mishandling of succession. In August, Gorman was named head of the committee charged with finding a replacement for Iger, who returned as the company's CEO in November 2022 to replace his hand-picked successor, Bob Chapek.

Iger, who is credited with building Disney's media empire including through the high-profile acquisitions of Pixar, Marvel and the Star Wars franchise, has seen his retirement date extended five times.

He initially planned to stay for two years after coming out of retirement, but agreed to extend his tenure through 2026. His contract concludes in December 2026.

"A critical priority before us is to appoint a new CEO, which we now expect to announce in early 2026," Gorman said in a statement, adding that the timing would "allow ample time for successful transition before the conclusion of Bob Iger's contract in 2026."

Gorman will succeed Mark Parker, who is leaving the Disney board after nine years. Parker, who also serves as executive chair of struggling sports retailer Nike, said he plans "to focus on other areas of my work."

Disney said its board discussed succession planning at each of its regularly scheduled meetings in fiscal 2024 and continues to review both internal and external candidates.

“James Gorman’s appointment ticks an awful lot of boxes and bringing in fresh blood to the chairman’s role paves the way for the appointment of a new CEO," said analyst Danni Hewson of AJ Bell.

“Bob Iger’s return was always temporary, and he’s certainly had to work hard to steer the entertainment juggernaut through some pretty choppy waters. It makes sense that he will be able to shepherd his successor to the top job, giving those working alongside him the chance to learn and impress," Hewson said.

CEO CANDIDATES

Reuters reported last year that four Disney executives were seen as contenders for the role of CEO. Top among them is Disney Entertainment co-Chair Dana Walden, who is a creative TV executive in the mold of Iger, with a string of commercial and critical successes and strong talent relationships.

Other internal candidates include Disney Experiences Chairman Josh D'Amaro - an executive with Iger-like charisma whose portfolio includes the company's most significant revenue engine, its theme parks - and ESPN Chairman Jimmy Pitaro, the likable executive who is guiding the sports network's digital transition.

Disney Entertainment Co-Chairman Alan Bergman, a Disney veteran who oversees the film studio that has released a pair of blockbuster films this year, also is in the running.

(Reporting by Deborah Sophia in Bengaluru; Editing by Shilpi Majumdar, Anil D'Silva and Mark Porter)