Disney CEO Bob Iger: Succession is board's 'No. 1 priority' post-proxy fight win

After successfully fending off activist investor Nelson Peltz, Disney (DIS) CEO Bob Iger says the company's board is focused on the future — in particular, who will be the entertainment giant's next CEO.

In an interview with CNBC on Thursday, Iger said succession planning remains the most important focus area for Disney, categorizing it as the board's "No. 1 priority."

He noted the company's succession committee — led by board members Mark Parker and James Gorman — met seven times in 2023 and intends to meet even more this year. Bob Iger's contract is set to expire at the end of 2026.

"[The board is] confident they will choose the right person at the right time," Iger added. "They're treating it with a sense of urgency because it is so important."

Succession became a key sticking point for Peltz and his backers throughout a months-long proxy battle that officially ended at the company's annual shareholder meeting on Wednesday.

At the meeting, Disney revealed the current board will remain intact following a shareholder vote that gave the company's slate a win "by a substantial margin." Peltz had attempted to secure board seats for himself and former Disney CFO Jay Rasulo.

"This whole process gave the board and some members of management an opportunity to engage with many shareholders, perhaps on an even deeper level," Iger said. "What we heard was, surprisingly, consistent with exactly what our priorities are ... Clearly, shareholders are interested and care very much about succession."

Disney's succession problems began in 2020 after Iger hand-selected Bob Chapek, who at the time was head of the company's parks, experiences, and products segment, for the job.

Shortly after, the COVID-19 pandemic upended the business. Under Chapek's tenure, Disney also faced political battles, A-list talent problems, and controversial reorganizations. Meanwhile, Chapek was left to contend with the ever-looming shadow of Iger, who spoke out against some of Chapek's decisions even prior to his return. Chapek was ousted from the position in November 2022 after less than three years on the job.

Now the question becomes who is on the list of possible successors. Rumors have swirled that internal candidates like Dana Walden and Alan Bergman, co-chairmen of Disney Entertainment, or Josh D'Amaro, head of Disney's parks and experiences division, could be next in line.

Other possibilities include former executives Kevin Mayer and Tom Staggs, who left the company in 2020 after Iger selected Chapek for the CEO position. Staggs is Disney's former COO, former CFO, and former head of Disney's parks division. Mayer handled strategy and development at the company, overseeing the launch of both Disney+ and ESPN+.

Both Mayer and Staggs, who currently run Blackstone-backed entertainment startup Candle Media, have since returned to serve as strategic advisers amid ESPN's streaming transition.

"Disney needs to be a lot more transparent about what they're doing on succession," Nell Minow, current Disney shareholder and vice chair of proxy advisory firm ValueEdge Advisors, told Yahoo Finance. "I think they will be as a result of this proxy fight — I think that's the one positive impact that Peltz has had."

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at [email protected].

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