James Gorman has completed Take 2, Disney’s first mission to replace its CEO.
Tuesday’s news of Josh D’Amaro’s promotion to CEO and Dana Walden’s appointment to the new position of president and chief creative officer signals a more considered process than the one that unfolded in February 2020, when Bob Chapek took over the reins from Bob Iger. Mr. Chapek, a Disney executive for 30 years, endured a difficult tenure that ended less than three years with Mr. Iger’s return. The structure outlined today marks a victory for Gorman, a former Morgan Stanley chairman and CEO who joined Disney’s board in 2024, a year after he ended his stint as CEO of the investment powerhouse.
When Gorman came to Disney, his mission was clear: manage the company’s CEO succession process. On Tuesday, Gorman spoke to Variety about the future of the media giant, which he called “incredibly undervalued.” By multiple accounts, Gorman has been praised as a steady figure who calmly led the selection process while distancing himself from key figures who provided perspective on what Disney needed most. Gorman said the board considered at least 100 external candidates in total before zeroing in on four internal candidates: D’Amaro, Walden, Disney Entertainment co-chairman Alan Bergman and ESPN chairman Jimmy Pitaro. The board voted unanimously, 10-10, to give D’Amaro Mickey’s famous magician’s hat.
A big day and big news for the Walt Disney Company. What were the main factors that led to the selection of Josh D’Amaro?
Board Open ended this with a very open mind. We did not pre-judge individuals as internal or external. We researched thoroughly and really wanted to find the right fit for this company’s challenges. Some people simply think that because you came from one business, that’s your focus. That’s obviously stupid. We had a lot of opportunities. We evaluated probably over 100 external people in some way and spoke to several of them. We evaluated four internal candidates and had multiple meetings with them. And I’m looking for people who are not only running a good business, which is necessary but not sufficient, but have the ability to grow into a CEO job, which is very different from running a business. And Josh demonstrated curiosity, innovation, energy, passion and all the essential qualities for the brand. But we were blessed. There were four wonderful people. It was like an embarrassment of riches. They’re all great… They’re all very experienced, very successful executives.
This decision was based on Josh’s deep background in parks and experiences, and many commented that the Disney board sees future growth coming from parks, experiences and cruises. Is that accurate?
I think that’s an amateur thing. No, look at the entertainment business. Under Alan’s leadership, we have established seven studios in the past two years. They made a $6 billion movie. There is an ABC linear channel. The streaming platform ESPN is currently making solid profits and continues to grow its profits. These are huge businesses that make up half of the company. Basically, Entertainment and ESPN together make up half of the company. No, that’s what the bulletin board says here. We were looking for a leader to run the entire company. But we love the businesses that make up this company. And I think you’re going to see about 50/50 in parks and cruises and the rest of the company for years to come.
In this changing landscape, what do you think are the key areas for Dana to focus on in this new film and TV job? What do you think are the biggest pitfalls to overcome in film, TV and streaming?
I don’t want to guess. Once Dana is settled into her job, ask her to tell you about herself. Maybe that’s fair. But obviously, how do we incorporate AI into filmmaking, how do we continue to generate the kind of benefits that other companies in the industry are making across streaming, and ensure that the storytelling that we’re doing through IP. Her job as chief creative officer for the entire company is to ensure that storytelling pervades every aspect of the company, not just in theaters and streaming channels, but through merchandise, through park experiences, and through cruises. So I think she would be a great partner for Josh. I think my husband is an excellent manager. And it just reminds everyone that the heart and center of this company is the magical experiences that we create.
When did you make Josh the CEO and give Dana a key support role in an area in which she had little experience? At what point do you think you settled on that structure?
He has some experience. So he was on Bob’s steering committee for several years. He has participated in numerous film versions through various editing processes. He’s worked with directors to bring in directors like (James) Cameron and bring the Avatar series to the parks. So he didn’t just appear out of nowhere. As a board, we will consider multiple options. The final decision was reached after discussion at yesterday’s board meeting. We have been experimenting with different scenarios for a long time and as a result we have stuck together as a group of people. 10 people voted and the vote was unanimous. And it gelled, and it gelled beautifully.
James, from your perch, what are the biggest issues? What are the biggest issues that Josh needs to focus on when he takes over next month?
I think I will be leading a new team. The first step is to demonstrate your leadership skills and communicate the right kind of brand, environmental, cultural indicators, and values statements to your 220,000+ employees. First, leadership, then values and strategy. And you know, he has a lot of opportunities to pursue. I’m not going to prejudge the order in which he does it, but obviously it’s about the transformation that AI is bringing to the industry as a whole. We’re leveraging these great franchises that we have and building on even more storytelling. Install new gates in some parks and build UAE parks. This is a great initiative that Bob launched with Josh. He has a lot of work to do, but for now, I think the world was waiting for us to get this done and done cleanly, and it’s done and done cleanly. Bob will be moving at the annual general meeting (March 18th) and I think this is a very graceful time. He will continue to serve as a senior advisor and director until the end of the year. Josh will get up and continue running the business, and we’ll get shareholders back into the stock, which is great. This is an incredibly undervalued company. So I’m excited, and I’ll give him a chance to really explain his plans for you in a fair manner in the near future.
Did you meet in person yesterday? If we met, was it in Burbank?
I can’t talk about how or what we did as a board. After the meeting, I was with Josh and Dana and was there to congratulate them.
(Photo: Disney Board Chairman James Gorman, incoming CEO Josh D’Amaro, incoming President and Chief Creative Officer Dana Walden, and outgoing CEO Bob Iger)
