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New CEO Appointing at Disney
Disney is on the verge of appointing its fourth board chair in slightly more than three years, as the company deals with the continuing chaos in the media sector.
The company announced Monday that Chairman Mark Parker will resign at the end of the year. James Gorman will take over from Parker as CEO of Morgan Stanley in 2025.
James Gorman Statement
“I am honored and humbled to have the opportunity to serve as Disney’s chairman at this important moment in the company’s history,” Gorman said in a statement.
Parker, who served as a board member for nine years, took over the chairman position last year from Susan Arnold, who held the position for a little over a year until her term ended. Arnold was a member of Disney’s board for fifteen years.
One of the decisions Gorman will have to make is to take over as CEO from Bob Iger. The company additionally stated that they will appoint a successor for Iger in early 2026. Iger came back as CEO last year following a short break. On Monday, Gorman emphasized the importance of selecting a new CEO, indicating that the timing of the announcement shows Disney’s advancement in finding a replacement for Iger.
When he was introduced, Parker stated that one of his main goals would be to replace Iger. Instead of that, Parker and the board promptly extended Iger’s contract until 2026. Even though Iger initially stated he would only stay for two years during his current time at the company, the extension now ensures he will continue as CEO for a minimum of four years in his second term.
Gorman is currently the head of Disney’s committee for succession planning, overseeing the search for a new CEO. However, Disney is facing challenges as it tries to adapt to the changing movie industry landscape, where more people are opting to stream content online instead of going to the theaters. Despite this, Disney’s streaming services have only started to make a profit recently. The ongoing decline of linear television has placed a significant burden on Iger and Disney’s future, particularly concerning ESPN, ABC, and other stations.
At the same time, Disney revealed in its most recent financial report that there was a somewhat disappointing level of spending by guests at its parks in the United States, which the company attributed to concerns about the economy.
The company stated that Gorman will be a valuable leader in guiding Disney through everything.
Mark Parker Remarks
“James Gorman is an esteemed leader who has become an invaluable voice on the Disney board since joining earlier this year, and I am extremely pleased that he has agreed to assume the role of chairman upon my departure,” said Parker, in a statement. “Drawing on his vast experience, James is expertly guiding the extensive search process for a new CEO, which remains a top priority for the board.”
Replacing Iger
By repeatedly announcing his impending departure from Disney, Iger has now become known as the CEO who can’t seem to make up his mind.
In his initial term as Disney CEO, Iger extended his contract several times despite vows to resign. He eventually stepped down just before the global pandemic hit, leading to the closure of businesses worldwide, including Disney. Bob Chapek took over for Iger in early 2020, but his time at Disney was marked by strategic mistakes and public relations crises.
Chapek didn’t survive in the job for three years. Substituting him: Iger, who pledged in late 2022 that he would resign promptly once a successor was appointed.
However, Iger achieved multiple victories in his recent term: He played a key role in resolving a significant labor conflict with directors, actors, and writers. He ended a complicated and intense conflict in the boardroom. And he ultimately turned Disney+ into a profitable venture.
However, Iger has become crucial, transforming Disney following a difficult previous few years. This year, Disney’s stock (DIS) has somewhat recovered and once again, Disney is favored among traditional media companies, despite the challenges posed by newer platforms like TikTok, YouTube, and Netflix.
Iger has finished repairing issues and is now dedicated to constructing the future Disney. However, it might be too early to announce that the mission is complete. On the very same day in May that Disney revealed positive streaming earnings, the company suffered its worst day in a year and a half on the stock market due to its unenthusiastic future projections. In August, Disney had a successful quarter but caused panic on Wall Street by announcing disappointing park earnings.
Iger still has more work to do improving Disney.
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