Disney’s (NYSE:DIS) CEO Races against Time to Find Successor
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Disney’s (NYSE:DIS) CEO Races against Time to Find Successor

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Disney’s CEO, Bob Iger, is actively searching for his successor as he navigates the company through challenging times.

The Walt Disney Company’s (DIS) CEO, Bob Iger, is actively searching for his successor as he navigates the company through challenging times. In a recent podcast with Kelly Ripa, Iger discussed his focus on finding the right leader to take over. “I think about [CEO succession] all the time,” he admitted. He added that saying “‘I’m obsessed with it’ would be an understatement.” He emphasized that when he returned as CEO of the media conglomerate, both he and the board agreed that identifying his replacement would be their top priority. However, with Iger’s contract set to expire in December 2026, the clock is ticking.

Disney’s Succession Planning Committee

In order to address this task, Disney recently announced that board member and former Morgan Stanley CEO James Gorman will chair the company’s succession planning committee. Gorman will lead a team that includes chairman and former Nike (NKE) CEO Mark Parker, GM (GM) CEO Mary Barra, and Lululemon (LULU) CEO Calvin McDonald. Their collective experience will be important in making sure that Disney finds the right person to lead the company.

Notably, the committee is particularly focused on avoiding a repeat of the challenges faced during Bob Chapek’s brief tenure as CEO.

Disney’s Former CEO Chapek Proved Controversial

Chapek, who was handpicked by Iger in 2020, was ousted less than three years later amid political controversies, talent disputes, and contentious reorganizations.

Iger returned to Disney in November 2022 with an initial commitment to a two-year term, but by July 2023, he had extended his tenure through the end of 2026. “It was not my intention to be pulled back in,” Iger told Ripa. “But I owed it to the company that meant so much to me to answer the call.”

Since Iger’s return, Disney has faced significant challenges. These include the industry’s shift away from linear television, its struggles at the box office, and fundamental changes at ESPN. Additionally, Disney’s parks business has shown signs of slowing down due to waning demand.

What Is the Target Price for DIS Stock?

Analysts remain bullish about DIS stock, with a Strong Buy consensus rating based on 19 Buys and four Holds. Over the past year, DIS has increased by more than 7%, and the average DIS price target of $118.53 implies an upside potential of 31.86% from current levels.

See more DIS analyst ratings

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