Morgan Stanley CEO, James Gorman, announced on Thursday that he will be joining a succession planning committee at Disney. This committee will provide advice to the board in selecting CEO Bob Iger’s successor. Gorman, who is stepping down as Morgan Stanley CEO on January 1, is set to join Disney’s board in February. His appointment to the committee is seen as a strategic move by Disney to fend off a potential proxy fight initiated by activist fund Trian and its chief, Nelson Peltz. However, Trian expressed dissatisfaction with the appointments made by Disney, and plans to push for Peltz and former Disney executive Jay Rasulo to join the board.
James Gorman has earned commendation for his successful management of the succession process at Morgan Stanley. He brings this experience to Disney’s succession committee, emphasizing his capacity to handle such responsibilities. Speaking to CNBC’s David Faber, Gorman highlighted his previous encounters with activist investors, indicating his readiness for any challenges that may arise during the Disney proxy fight.
In recent years, Disney has faced numerous challenges including box office flops and streaming losses. These setbacks prompted CEO Bob Iger to reorganize the company and implement cost-cutting measures aimed at reducing expenses by $7.5 billion. To address the concerns raised by activist fund Trian, Disney appointed Gorman and former Sky TV boss Jeremy Darroch to its board. This move is seen as a proactive step to counter the potential proxy fight and ensure a smooth leadership transition in the future.
James Gorman’s appointment to Disney’s succession committee is expected to bring invaluable expertise in navigating the complexities of leadership transition. With his extensive experience at Morgan Stanley, Gorman will play a crucial role in advising the board on selecting the most suitable successor to Bob Iger. While Gorman will officially become a director in February, his involvement in the succession process will commence in advance due to his prior experience in managing such matters at Morgan Stanley.
Disney’s decision to establish a succession planning committee, with James Gorman as a key member, underlines the company’s commitment to ensuring a smooth transition of leadership. As Bob Iger’s tenure as CEO reaches its conclusion, Disney aims to continue its success in the entertainment industry. By identifying and appointing a suitable successor, the company will maintain its position as one of the leading global entertainment conglomerates. Gorman’s appointment adds another layer of expertise to the committee, further solidifying Disney’s commitment to a robust and well-planned succession process.
James Gorman’s involvement in Disney’s succession planning committee is a significant development for both Disney and Gorman himself. As he steps down as CEO of Morgan Stanley and prepares to join Disney’s board, Gorman’s experience and expertise will undoubtedly contribute to the selection of the most fitting successor for Bob Iger. Disney’s proactive approach in addressing activist concerns, coupled with the reorganization efforts undertaken by Iger, sets the stage for a promising future. As the entertainment industry continues to evolve and face challenges, Disney remains focused on maintaining its leadership position with a strong and well-prepared succession plan.