Disney CEO Bob Iger (Photo: Bloomberg)
With Walt Disney’s months-long proxy war with activist investor Nelson Peltz in the rearview mirror, attention is once again turning to finding CEO Bob Iger’s successor.
The board has extended Iger’s retirement date five times, with decisions on finding a replacement continually postponed.
Disney board members sought to reassure investors ahead of Wednesday’s shareholder vote that they are taking the issue of succession seriously this time around as they vet internal and external candidates ahead of Iger’s new retirement date at the end of 2026.
This week, attention focused on Dana Walden, co-chairman of Disney Entertainment, as the current top candidate, among Hollywood insiders, many of whom are former Disney executives or those who have done business with one of the world’s largest entertainment conglomerates.
Walden is a creative TV executive in the mold of Iger, with a string of commercial and critical successes and strong talent relationships, who has quickly adapted to the company culture after 25 years at 21st Century Fox, said those who have worked with her.
Other internal candidates include Josh D’Amaro, chairman of Disney Experiences, an executive with Iger-like charisma whose portfolio includes the company’s main source of revenue, its theme parks, and ESPN chairman Jimmy Pitaro, the affable executive who is spearheading the digital transition of the sports network. This is evident from six leading industry sources who know the company and its top managers.
Disney Entertainment co-chairman Alan Bergman, a Disney veteran who oversees film production and streaming, could also be in the running, they said.
“This obviously has to be done better than last time,” said MoffettNathanson media analyst Michael Nathanson. “They have four good candidates and they all have different skills. They’re going to test everyone. There will be more involvement in the street and learning how these people interact with us. It will become clear over the next twelve months. The company could not immediately be reached for comment.
In an emergency move, Iger returned to Disney in November 2022, just eleven months after his retirement, to save the company from his hand-picked successor, Bob Chapek. Despite steadying the ship during the Covid-19 pandemic, Chapek antagonized an A-list actor and Republican presidential candidate, Florida Governor Ron DeSantis, who launched a war against the entertainment conglomerate that denied its autonomy over Walt Disney World restricted. Meanwhile, mounting streaming losses caused the company’s shares to plummet.
The decision to bring back the former CEO signaled a seriously flawed succession process, proxy advisory firm Institutional Shareholder Services said in its recommendation to place billionaire investor Nelson Peltz on the board.
Hollywood executives familiar with Disney’s operations said the board would prefer to elevate an internal candidate given the company’s distinct culture and iconic brand.
Occasionally it has found leadership outside the Magic Kingdom, such as when it hired Barry Diller protégé Michael Eisner in 1984 to revive the company.
One source close to Iger knows of no outside candidates.
Another source mentioned Candle Media co-CEO Kevin Mayer, the company’s former chief strategy officer and advisor to Iger, as a possible outside competitor.
Disney’s division presidents are considered strong executives with specialized expertise. But no one has the breadth of experience needed to run a diversified media conglomerate like Disney, said Hollywood executives who spoke to Reuters.
Iger may choose to elevate Walden or another internal candidate to president, giving exposure to other parts of the company, before his planned departure.
Previous attempts to groom an heir to the throne have failed, such as when Iger promoted park chief Tom Staggs to chief operating officer in February 2015, bypassing Disney’s Chief Financial Officer Jay Rasulo. Two months later, Rasulo left. The following May, Staggs also left the company after learning he would not be Disney’s next CEO.
A subsequent “bake-off” between park chief Chapek and Disney’s streaming company chairman Mayer resulted in Chapek’s promotion in February 2020 — and Mayer’s departure, months later, to briefly serve as CEO of TikTok.
Disney’s board extended Iger’s contract until July 2, 2019, and again until 2021, to give the company time to find a successor. That happened again last July, in another attempt to buy time. With Disney facing a generational crisis, Iger may have to wait longer to repair his 180-foot yacht, Aquarius.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)
First print: April 4, 2024 | 8:05 am IST