Disney is undergoing significant leadership changes, as Mark Parker, the current chairman of the board, is set to step down at the end of the year. The entertainment giant announced on Monday that James Gorman, CEO of Morgan Stanley, will take over as board chair starting in 2025. This appointment marks Disney's fourth board chair in just over three years, highlighting the company's continued efforts to navigate the turbulent media landscape.
"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. Gorman's appointment comes as Disney grapples with industry shifts, including declining revenues in its traditional TV segment and pressures on its streaming business.
Parker, who has been a board member for nine years, took on the role of chairman just last year, succeeding Susan Arnold. Arnold served as chair for over a year before her term expired. Disney's leadership has faced continuous upheaval, particularly following the reappointment of Bob Iger as CEO last year. Iger, who originally stepped down in 2020, returned after the brief and tumultuous tenure of his successor, Bob Chapek.
The board has announced that a replacement for Iger will be named in early 2026, a decision that Gorman says reflects "progress in Disney's decision to replace Iger." Gorman currently serves as the head of Disney's succession planning committee, which is responsible for overseeing the search for a new CEO-a process that has proved challenging amid broader shifts in consumer preferences and the evolving media landscape.
The entertainment industry has been in a state of flux, with movie theaters seeing dwindling audiences as consumers increasingly prefer streaming services. Disney, however, has struggled to turn its streaming business into a consistently profitable venture. While Disney+ recently posted its first profitable quarter, the competition remains fierce, and the streaming wars continue to put pressure on profitability.
In addition to streaming challenges, Disney's linear television segment-which includes ESPN and ABC-is facing declining viewership and advertising revenue. The uncertainty surrounding the future of these assets has weighed heavily on Iger and Disney's board. At the same time, the company is experiencing softer-than-expected spending from visitors to its U.S. theme parks, which has contributed to the challenges facing the iconic entertainment brand.
Gorman, who joined Disney's board less than a year ago, will be tasked with guiding the company through these uncertainties while leading the search for a new CEO. "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," Parker said in a statement. He added that Gorman's expertise would be critical as Disney moves forward with its leadership transition.
Parker's departure comes as he plans to focus on other endeavors, including his responsibilities at Nike, where he serves as executive chairman. Disney insiders have pointed out that succession planning at the company has been fraught with challenges, particularly after Iger's handpicked successor, Bob Chapek, was ousted following a difficult period marked by strategic missteps and poor financial performance.
Gorman brings experience in leadership transitions, having overseen the smooth transfer of power at Morgan Stanley, where Ted Pick succeeded him as CEO earlier this year. This experience is expected to be valuable as Disney continues its search for Iger's successor. "We're running a forward-looking, incredibly disciplined process," Gorman said in an interview earlier this year, indicating the company's commitment to finding the right leader.
The decision to push back the timeline for announcing Iger's successor to early 2026 aims to provide more time for due diligence on internal and external candidates. Among those interviewed for the role are four of Iger's direct reports: ESPN Chairman Jimmy Pitaro, Disney Experiences Chairman Josh D'Amaro, and Disney Entertainment Co-Chairmen Dana Walden and Alan Bergman.
Iger, who has postponed his retirement multiple times, has indicated that he will step down by the end of 2026. However, there remains speculation over whether his tenure could be extended again, as Disney faces mounting challenges. The company's leadership turmoil has also attracted scrutiny from activist investors, including Nelson Peltz, who earlier this year unsuccessfully campaigned for board seats, criticizing the board's failure to secure a lasting successor for Iger.
