Disney Appoints Morgan Stanley’s James P. Gorman as Chairman, Succession Plans in Motion
Walt Disney Co. (DIS) has made a key leadership change, appointing Morgan Stanley’s (MS) James P. Gorman as its new Chairman of the Board, effective January 2, 2025. Gorman will succeed Mark G. Parker, who is stepping down after nine years of service.
This appointment comes amidst a period of transition for Disney, as the company navigates the search for a successor to CEO Bob Iger, who returned to the company in November 2022. Gorman, currently Chair of the Disney Board’s Succession Planning Committee, is actively involved in identifying and preparing the company’s next CEO.
Gorman’s appointment signals a significant shift in Disney’s leadership, as the company moves towards a new era. The appointment also comes as Disney is facing a number of challenges, including declining subscriber growth at its streaming service Disney+, and declining revenues at its theme parks.
Gorman has indicated that Disney plans to announce a new CEO in early 2026. During Disney’s second-quarter earnings call, Iger provided a vague response regarding his succession plans, stating that the board is actively managing the process with a dedicated committee. He assured a smooth transition but refrained from disclosing specifics, fueling speculation about who will succeed him.
Industry experts have named key internal candidates like Dana Walden and Josh D’Amaro as potential successors.
The appointment of Gorman as Chairman comes as Disney continues to navigate the transition from Iger’s leadership. The company faces a number of challenges, including declining subscriber growth at its streaming service Disney+, and declining revenues at its theme parks.
In November 2022, Iger returned as Disney’s CEO after serving as CEO and Chair from 2005 to 2020. In 2020, Iger was succeeded by Bob Chapek, but tensions reportedly arose between the two over the CEO office at Disney headquarters.
The appointment of Gorman as Chairman could signal a shift in Disney’s strategic direction. Gorman’s expertise in finance and his experience as a successful CEO could be valuable assets to Disney as the company seeks to navigate the evolving media landscape.
Meanwhile, Jim Cramer, a well-known financial commentator, has expressed interest in buying more Disney shares if the stock drops below $90 during the October Investing Club Meeting. He acknowledged the challenges faced by Disney’s theme parks but emphasized the strategic opportunity of purchasing during market downturns. Cramer suggested that Disney focus more on theme parks for growth instead of relying solely on movies and television.
Disney has been making significant cuts to its workforce in recent months. The company reportedly fired 300 employees across multiple corporate departments in September. Earlier in 2024, Disney let go of 140 employees in its television division and 175 workers in its Pixar subsidiary.
These cuts suggest that Disney is looking to cut costs and improve efficiency as it navigates a challenging economic environment. Disney’s stock has lost over 13% in the last six months, reflecting investor concerns about the company’s future.
Investors can gain exposure to Disney through iShares Russell 1000 Value ETF IWD and Vanguard Growth ETF VUG.
Price Actions: DIS stock is down 0.76% at $96.55 at the last check Monday.