James Gorman, the former Morgan Stanley CEO who joined Disney’s board earlier this year in a signal to investors about the company’s succession process, has been named chairman.

He will succeed Mark Parker on January 2, 2025. Parker, executive chairman of Nike, is leaving the board after serving as a director for nine years.

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The company also said it will announce CEO Bob Iger’s successor in early 2026, giving time for the executive to coordinate the transition with Iger before the top exec’s current contract expires on December 31, 2026.

Gorman remains executive chairman at Morgan Stanley but will be relinquishing that position on December 31. He currently leads Disney’s succession planning committee, having gained notice in the business community for engineering a smooth succession process at Morgan Stanley.

Iger is widely admired in entertainment and business circles, but succession has not proven to be his strong suit (as was the case for his predecessor, Michael Eisner). After announcing retirement plans and reversing himself multiple times over the years, Iger eventually handed the reins to Bob Chapek in 2020. The new chief faced major challenges with the onset of Covid and eventually falling out with the board and Iger, who had remained executive chairman after passing the CEO baton.

Iger returned to the corner office in November 2022 and has vowed to execute a better handoff this time. Four internal candidates – ESPN cjairman Jimmy Pitaro, parks boss Josh D’Amaro and Disney Entertainment co-chairs Dana Walden and Alan Bergman – have been identified. Some outsiders have reportedly also been approached.

“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. Drawing on his vast experience, James is expertly guiding the extensive search process for a new CEO, which remains a top priority for the Board,” Parker said in a press release. “As I prepare to leave the Board to focus on other areas of my work, I am proud of Disney’s renewed position of strength and excited for the company’s future, and I want to thank my fellow directors, Bob Iger and his exemplary management team for their continued strong leadership and dedication.”

Iger said the board has “benefited tremendously from James Gorman’s expertise and guidance, and we are lucky to have him as our next Chairman – particularly as the board continues to move forward with the succession process.” He added his gratitude to Parker for his “many years of board service and leadership, which have been so valuable to this company and its shareholders, and to me as CEO.”

Gorman said appointing a new CEO is “a critical priority” for Disney.

The succession planning committee is chaired by Gorman and includes directors Mary Barra and Calvin McDonald, as well as Parker until his departure.

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