Disney Extends CEO Succession Timeline to Early 2026 for More Due Diligence

Bob Iger's current contract as Disney CEO lasts until December 31, 2026, with no decision yet on extending his board tenure.

By

ANAHEIM, CALIFORNIA - AUGUST 09: Bob Iger, CEO, The Walt Disney Company appears at the Disney Entertainment Showcase at D23: The Ultimate Disney Fan Event in Anaheim, California on August 09, 2024. Jesse Grant/Getty Images for Disney

Disney is preparing to finally zero in on a new successor for CEO Bob Iger, after intense pressure earlier this year.

However, plans to do so will be by early 2026 instead. For now, a new chairman will be starting in January instead.

Per CNBC, James Gorman will succeed Mark Parker in the role as the preparation for a new CEO starts. Not necessarily new to Disney, the new chairman has been a board member for less than a year and spearheaded the succession planning committee in August.

Initially, Disney planned to announce a new CEO in 2025 but had to extend it to early 2026 to allow the board more time for careful consideration of both internal and external candidates.

Disney's New Chairman of the Board for New CEO Succession

Gorman currently has a successful experience in succession planning from his time at Morgan Stanley.

However, Disney's succession process is proving to be quite difficult, especially after the board dismissed Igor's chosen successor, Bob Chapek in 2022. As of now, Iger's four direct reports, the Chairmans for Disney Experiences, Disney Entertainment, and ESPN, including Dana Walden, have been interviewed by the succession committee since Gorman became chair.

No specific qualifications were announced then but Disney stated that they are expecting the process to be more forward-leaning and looking, as well as "incredibly disciplined."

Iger's contract as Disney CEO will expire on December 31, 2026, and there has been no finalized discussion on whether he will continue on the board beyond that date. However, it's worth noting that Iger has postponed his retirement five times to maintain his role in Disney, following concerns from activist investor, Nelson Peltz, who VCPost mentioned had a failed bid for a board seat earlier this year.

Tags
Disney, Bob Iger

© 2024 VCPOST.com All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics