Key Takeaways:
- The Walt Disney Co. is preparing for a pivotal leadership transition as CEO Bob Iger is set to step down at the end of the year.
- Four internal candidates, including Josh D’Amaro, Dana Walden, Alan Bergman, and Jimmy Pitaro, are vying for the top job.
- The company’s board, led by Chairman James P. Gorman, is evaluating the candidates and considering the challenges facing the company, including the erosion of traditional TV channels, the shift to streaming, and the uncertain U.S. economy.
- The board is committed to finding the right leader and positioning them for long-term success, including surrounding them with a team of senior executives.
- The company’s next CEO will need to navigate an uncertain future, fortify Disney+ as a leading streaming service, and balance advances in artificial intelligence with the value of beloved characters.
Introduction to the Succession Plan
The Walt Disney Co. is on the cusp of a significant leadership transition, with CEO Bob Iger set to step down at the end of the year. This time around, the company has entrusted a take-charge outsider, James P. Gorman, to oversee the CEO transition. Gorman, the former head of Morgan Stanley, has a proven track record of stabilizing and revitalizing companies, and his expertise will be crucial in navigating the challenges facing Disney. The company’s board has established a succession committee to evaluate the candidates and consider the intangibles needed to steer Disney through its steep business challenges.
The Challenges Facing Disney
Disney is facing numerous challenges, including the erosion of traditional TV channels, the shift to streaming, the expansion of artificial intelligence, and the uncertain U.S. economy. The company’s next CEO will need to navigate these challenges and make tough decisions to ensure the company’s long-term success. The board is looking for a leader who can balance the company’s creative and business sides, as well as its various business units, including theme parks, television, and streaming. The CEO will also need to consider the company’s global presence and the impact of geopolitical events on its operations.
The Candidates
Four internal candidates are vying for the top job: Josh D’Amaro, Dana Walden, Alan Bergman, and Jimmy Pitaro. Each candidate has their strengths and weaknesses, and the board will need to carefully evaluate their skills and experience. D’Amaro, the chairman of Disney parks, experiences, and products, is seen as a likely successor, but he lacks experience in Hollywood. Walden, the top television and streaming executive, has a strong background in talent relations and could become the first woman to lead the company. Bergman and Pitaro round out the field, each with their own unique strengths and weaknesses.
Gorman’s Approach to Succession
Gorman has a disciplined approach to succession, which he developed during his time at Morgan Stanley. He believes in creating a framework for succession and evaluating candidates based on their skills, stamina, and public appeal. Gorman also emphasizes the importance of considering the human side of succession, including the impact on employees and shareholders. At Morgan Stanley, Gorman led a multi-year process that resulted in a smooth transition, and he is expected to bring a similar approach to Disney.
The Importance of Leadership Balance
The board is committed to finding the right leader and positioning them for long-term success. This includes surrounding the new CEO with a team of senior executives who can work together to lead the company into the future. The board may consider appointing co-presidents to report to the new CEO, which could help balance the company’s various business units. This approach would allow the new CEO to focus on overall strategy and direction, while the co-presidents would oversee specific areas of the business.
The Future of Disney
Disney’s next CEO will need to navigate an uncertain future and make tough decisions to ensure the company’s long-term success. The company must prove to investors that the value of its premium content and theme parks is meaningful, and that its streaming pivot will have a big payoff. The CEO will also need to balance advances in artificial intelligence with the value of beloved characters, such as Moana and Winnie the Pooh. With the right leadership and a clear strategy, Disney can continue to thrive and remain a leader in the entertainment industry.
Conclusion
The Walt Disney Co. is at a critical juncture, with a new CEO set to take the reins at the end of the year. The company’s board, led by Chairman James P. Gorman, is evaluating the candidates and considering the challenges facing the company. With a disciplined approach to succession and a commitment to finding the right leader, Disney is well-positioned for long-term success. The company’s next CEO will need to navigate an uncertain future, balance the company’s various business units, and make tough decisions to ensure the company’s continued success. As Gorman noted, "Organizations grow because you have change. You’re not going to grow by doing the same thing, again and again."
