After a failed first attempt, Disney launches round 2 of replacing Bob Iger

Walt Disney tapped an executive with succession experience to usher in the company’s next chapter as CEO Bob Iger plans to exit when his contract expires in 2026. Disney named board member and Morgan Stanley Executive Chairman James Gorman to chair its succession planning committee. Gorman previously served as CEO of Morgan Stanley and oversaw the succession process at the investment bank.

Iger served as CEO of Disney from 2005 to 2020. He hand-picked Bob Chapek to be his successor, but after a series of missteps and weak performance , Disney fired Chapek in 2022. Iger returned to the company and the dysfunction of the succession process caught the attention of the media and investors.

Gorman's tenure as CEO of Morgan Stanley started in 2010 as the bank dealt with the impacts of the Great Recession. Gorman served in the role until the end of 2023. He oversaw the succession process that led to Ted Pick becoming the bank’s CEO .

While Iger was accused of undermining his successor at every turn, Gorman took a different approach. He said that when he left, his successor needed to be free to do the job.

With Iger back at the helm, Disney survived a proxy war in April with activist investor Nelson Peltz . Peltz was unhappy with the company’s succession handling and its lackluster performance in streaming.

Disney extended Iger’s contract through 2026 and he says that is "definitely" his end date.

Mark Parker, the Disney board chair who led the succession planning committee, will remain a member with GM CEO Mary Barra and lululemon CEO Calvin McDonald. All of the members of the committee have direct experience in CEO and leadership succession planning for Fortune 500 companies.

The committee formed in January of last year and has met six times so far in fiscal year 2024. As it tries to avoid another Chapek-like debacle, the company said in a statement, "The Committee and Board are reviewing internal candidates and external candidates.

Internal candidates are going through a preparation process that includes mentorship from Disney CEO Robert A. Iger, external coaching, and engagement with all Board directors."

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