Disney’s casting call for a new CEO has officially wrapped, ending a multi-year search that had fans and shareholders on the edge of their seats. This edition of our M&A and Corporate newsletter explores the entertainment giant’s leadership journey and the valuable succession-planning lessons business leaders can apply to their own companies.
This past Tuesday, The Walt Disney Company ended its closely watched CEO search when it revealed that Josh D’Amaro, head of the company’s theme parks and consumer products division, will take the reins when current CEO Bob Iger officially steps down in March after almost twenty years of service. Following the transition in March, Iger will serve as a member of the board and senior advisor until his retirement at the end of 2026.
The announcement ends a multi-year leadership shuffle that left the company under intense scrutiny. Iger served as Disney’s CEO from 2005 to 2020, when he was succeeded by Bob Chapek. Reportedly, Chapek was hand-picked by Iger to follow in his footsteps, forgoing the typical board member review process. As part of the transition, Iger intended to remain with Disney for an additional 22 months as an executive chairman and run “creative endeavors” while Chapek gained experience in his new role.
However, Chapek’s appointment was brief compared to his predecessor, following the massive impact of the COVID-19 pandemic, media and political conflicts, and the deteriorating relationship between the incoming and outgoing CEOs. Despite personally selecting his successor, Iger’s handoff to Chapek went anything but smoothly during the 22-month-long transition. Communication breakdowns between leadership and the board, an unclear division of responsibilities between Chapek and Iger, a confusing new direction for the legacy company, and interpersonal conflicts culminated in a short, rocky tenure for the new CEO.
Chapek was ousted in late 2022, and Iger returned as CEO while Disney reevaluated its succession plan. The company extended Iger’s contract while reassessing its plans for the future of the multi-billion-dollar entertainment giant. Now, Josh D’Amaro is poised to oversee Disney’s next foray into new leadership with a clearer path forward and, hopefully, a much happier ending.
What Can Businesses Learn From This?
Despite being one of the most valuable entertainment companies in the world, with theme parks across the globe and ownership of generational assets such as Pixar, Marvel, Star Wars, and Fox, Disney stumbled on the bedrock of business leadership – succession planning. The decision to hand over the keys to Cinderella’s castle needed to be rooted in more than the business acumen of one person, even despite his leadership experience.
Compare Disney’s sprawling CEO drama to Giorgio Armani’s meticulous business succession plan, which laid out a clear, multi-year vision to reroute control of the iconic fashion house to various heirs and included specific financial directives regarding IPOs and M&A activity. While admittedly occurring under different circumstances, the rollout of the leadership changes for each company could not be more different.
Businesses that are undergoing leadership changes for any reason, whether due to retirement, acquisition, or otherwise, must ensure that controlling parties are aligned and expectations are clear from the start. CEO appointments should be thoroughly vetted – a trust-but-verify approach for boards that are reviewing hand-picked candidates for a role as crucial as Chief Executive Officer.
Looking to plan for the next phase of your business, and beyond? Contact M&A and Corporate lead Connie Phelps at cphelps@berenzweiglaw.com.