Big shock at Disney: The CEO is out. The new CEO is coming soon

CNN
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Disney is about to welcome its fourth chief executive in just over three years as the company continues to navigate ongoing turmoil in the media industry.

Chief Executive Mark Parker will step down at the end of the year, the company announced Monday. Morgan Stanley CEO James Gorman will replace Parker starting in 2025.

“I am humbled and honored to have the opportunity to serve as chairman of Disney at this important moment in the company’s history,” Gorman said in a statement.

Parker, a board member for nine years, took on the role of chair just last year, replacing Susan Arnold, who served in the role for just over a year until her term expired. Arnold served on Disney's board for a decade and a half.

Some of the decisions Gorman will be entrusted with include: replacing Bob Iger as CEO. The company also announced that a successor to Iger will be named in early 2026. Iger returned as CEO last year after a brief hiatus. Gorman said Monday that choosing a new CEO is “critically important” and the announcement of the timing reflects progress on Disney's decision to replace Iger.

Parker said in making the announcement that replacing Iger would be among his top priorities. Instead, Parker and the board quickly extended Iger's contract through 2026. Although Iger said he would not stay with the company for more than two years in his final term, the extension meant he will serve as CEO for at least four years in his second term .

Gorman currently serves as chairman of Disney's Succession Planning Committee, which is responsible for the CEO search. But that has proven difficult as Disney navigates troubled waters: The film industry is faltering as people increasingly stream shows and movies online, but Disney's streaming business only recently became profitable. And as linear television continues to decline, the future of ESPN, ABC and other networks weighs heavily on Iger and Disney.

Meanwhile, Disney flagged somewhat weak spending by visitors to its U.S. parks in its most recent earnings report, which the company blamed on economic turmoil.

The company said Gorman will prove to be a valuable leader to help Disney navigate all of this.

“James Gorman is a valued 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 take on the role of Chairman following my departure.” Parker said in a statement. “With his extensive experience, James is expertly leading the comprehensive search process for a new CEO, who remains a top priority for the Board.”