Significant alterations at Disney: The board head steps down. A fresh CEO is set to join shortly.
Mark Parker is set to step down at year's end, the corporation revealed on Monday. James Gorman, Chief Executive Officer of Morgan Stanley, will take over from Parker starting in 2025.
Gorman expressed gratitude and humility in a statement, stating, "I am honored and humbled to take up the role of Disney's chairman at this pivotal moment in the company's history."
Parker, who has served on the board for nine years, assumed the chairmanship role last year, succeeding Susan Arnold, who held the position for a year and a half before her term expired. Arnold had been a member of Disney's board for fifteen and a half years.
One of Gorman's responsibilities will be to find a successor for Bob Iger as CEO. The company announced that a replacement for Iger will be named in early 2026. Iger returned as CEO last year following a brief break. Gorman mentioned on Monday that choosing a new CEO is "crucial," and the announcement of the timing reflects Disney's progress in its decision to replace Iger.
When Parker was appointed, replacing Iger was one of his top priorities. However, Parker and the board swiftly renewed Iger's contract through 2026, meaning that Iger will serve as CEO for at least four more years in his second tenure.
Gorman currently leads Disney's succession planning committee, responsible for finding a new CEO. However, this task has proven challenging as Disney navigates rough waters: The movie industry is in decline as people increasingly opt for streaming services, but Disney's streaming business has only recently become profitable. Linear television is continuing to decline, and the future of ESPN, ABC, and other stations have weighed heavily on Iger and Disney.
In the latest financial report, Disney announced less-than-impressive spending by visitors to its US parks, which the company attributed to economic jitters.
The company believes that Gorman will be an excellent leader to help guide Disney through these challenges.
"James Gorman is a highly respected leader who has made an invaluable contribution to the Disney board since joining earlier this year," said Parker in a statement. "I am thrilled that he has agreed to take up the role of chairman upon my departure, 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."
Gorman's extensive experience in the business world, specifically his role as CEO of Morgan Stanley in the media industry, will be crucial in finding a suitable successor for Bob Iger as Disney's CEO. The media landscape, with the decline of the movie industry and the rise of streaming services, presents unique challenges that Gorman's leadership can help navigate.
