Disney CEO Bob Iger has a lingering legacy problem

Second chance. Walt Disney is trying to break spell of its enchanted corner office. board is trolling to replace its longtime occupant Chief Executive Bob Iger, something it has failed at repeatedly. best way for Iger to ink his legacy is to nudge directors along.

From Beverly Hills to West Hollywood, scuttle among Tinseltown executives is that Iger will never leave. ir skepticism is warranted. Since he was first appointed chief executive in 2005, he extended his contract five times before he abruptly appointed longtime Disney executive Bob Chapek to succeed him in February 2020. board invited Iger back in November 2022, after booting out Chapek. He has since extended his contract until 2026.

company said a successful CEO transition is a top priority. In January 2023, board formed a special Succession Planning Committee tasked with finding a new leer. search committee met seven times last year, according to Disney’s white paper released on Monday. ir mandate includes developing a timeline and reviewing prospective internal and external candidates. Half of committee – Nike Chair Mark Parker and General Motors boss Mary Barra – have been directors for over six years and are responsible for past ill-fated changing of guard.

re are two directions company could go. Disney could tap someone in house. board is evaluating four of Disney’s divisional hes as part of formal search, Bloomberg reported on Wednesday. Dana Walden, co-chair of Disney Entertainment who is respected among creative community, or James Pitaro, leer of sports network ESPN, seem like runners. $205 billion company could throw a stone in Los Angeles and find a Disney alum. Tom Staggs, who was once heir apparent when he was chief operating officer at Mouse House, might be invited back in form of a deal. He is currently consulting for Iger. Disney could buy Blackstone-backed Candle Media, firm founded by Staggs and former Disney executive Kevin Mayer and have an instant contender for C-suite.

When Iger left Disney just as world was on brink of a pandemic, his reputation was riding high. He got its streaming flagship service Disney+ off ground to great fanfare, and Disney sharply outperformed S&P 500 Index. His second go-around has eroded credibility, and risks those returns. Prodding board to find his successor and defying Hollywood’s conventional wisdom would preserve his legacy.