Don Chmielewski
(Reuters) – With Walt Disney’s months-long proxy war with activist investor Nelson Peltz in the rearview mirror, attention is turning to the search for a successor to CEO Bob Iger.
The board has extended Iger’s retirement date five times, continually delaying a decision on finding a replacement.
Disney Ahead of Wednesday’s shareholder vote, board members sought to reassure investors that they are taking the succession issue seriously this time as they vet internal and external candidates ahead of Iger’s new retirement date of the end of 2026.
This week, attention was focused on Disney Entertainment co-chairman Dana Walden as the current top contender among Hollywood insiders, many of whom were former Disney executives or those who did business with one of the world’s largest entertainment conglomerates.
Walden is a TV creative executive similar to Iger, with a string of commercial and critical successes and strong talent connections. She quickly adapted to the company’s culture after 25 years at 21st Century Fox, say those who worked with her.
Other internal candidates include Disney Experiences Chairman Josh D’Amaro, an executive with Iger-like charisma whose portfolio includes the company’s most significant source of revenue, its theme parks, and ESPN Chairman Jimmy Pitaro, a likeable executive who is leading the sports network’s transition to digital. , according to a half-dozen senior industry sources who know the company and its top executives.
Disney Entertainment co-chairman Alan Bergman, a Disney veteran who oversees film production and streaming, could also run, they said.
“Obviously, it has to be done better than last time,” said MoffettNathanson media analyst Michael Nathanson. “They have four good candidates and they all have different skill sets. They’re going to test everyone. There will be more interaction with the street, learning how these people treat us. This will become clear over the next 12 months.” “
The company could not be reached for comment.
“WRONG INHERITANCE PROCESS”
Iger made an emergency return to Disney in November 2022, just 11 months after retiring, to save the company from Bob Chapek’s handpicked successor. Even as Chapek steadied the ship during the Covid-19 pandemic, he angered A-list actor and Republican presidential candidate Florida Gov. Ron DeSantis, who waged a war against the entertainment conglomerate for limiting its autonomy over Walt Disney (NYSE: ) World. Meanwhile, mounting losses from streaming have sent the company’s shares tumbling.
The decision to bring back the former CEO signaled a “deeply flawed succession process,” consulting firm Institutional Shareholder Services said in its recommendation that billionaire investor Nelson Peltz be added to the board.
Hollywood executives familiar with Disney’s business said the board would prefer to nominate an internal candidate, given the company’s distinctive culture and iconic brand. From time to time, the company 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 doesn’t know of any outside candidates. Another source named Candle Media co-CEO Kevin Mayer, the company’s former chief strategy officer who serves as an adviser to Iger, as a possible outside suitor.
Disney division chairmen are considered strong leaders with specialized experience. But neither has the breadth of experience needed to run a diversified media conglomerate like Disney, Hollywood executives who spoke to Reuters said.
Iger may decide to promote Walden or another internal candidate to become president to provide access to other parts of the business before his planned departure.
Past attempts to groom a successor have failed, such as when Iger named parks chief Tom Staggs chief operating officer in February 2015, overtaking Disney CFO Jay Rasulo. Two months later, Rasulo left. By May of the following year, Staggs also left the company after learning that he would not be Disney’s next CEO.
A subsequent “conflict” between parks chief Chapek and Disney’s streaming business chairman Mayer led to Chapek’s promotion in February 2020, and a few months later Mayer left to briefly take over as CEO of TikTok.
Disney’s board of directors extended Iger’s contract until July 2, 2019, and again until 2021, to give the company time to find a successor. Last July they did it again, in another attempt to buy time. As Disney faces a generational crisis, Iger may have to wait longer to renovate his 184-foot yacht, Aquarius.