Disney has appointed Josh D’Amaro as its new chief executive, marking the second significant leadership transition within six years. D’Amaro succeeds Bob Chapek, who faced challenges during his nearly three-year tenure. This latest succession process was more extensive, involving three years of vetting and interviews with 100 external candidates. The succession committee was led by James Gorman, known for his thorough planning during his time at Morgan Stanley.
Unlike when Bob Iger appointed Chapek, this time Iger had an equal role in the decision alongside other board members. D’Amaro, aged 54, has a commendable reputation and has managed a substantial budget for Disney’s theme parks and cruise lines under Chapek. Nevertheless, skepticism exists regarding his lack of experience in media and entertainment, particularly as Disney’s shares have seen a decline amid increased competition from Big Tech. Some analysts express concerns over whether D’Amaro, with his background primarily in theme parks, can tackle the broader strategic challenges facing the company.
Conversely, former Disney executive Tom Staggs praised D’Amaro’s leadership qualities, noting his willingness to collaborate with experienced colleagues. D’Amaro is tasked with navigating several challenges, including rapid advancements in artificial intelligence and the shifting dynamics of the entertainment industry.
Although he has established a good relationship with Disney’s theme park enthusiasts, the success of Disney is ultimately tied to its entertainment division, which produces premiere franchises that drive visitor numbers to the parks. Alongside D’Amaro, Dana Walden has been appointed as Disney’s president and chief creative officer, further reinforcing the creative leadership needed for the company’s future success.
Why this story matters
- The leadership change could impact Disney’s strategic direction amid significant challenges in the entertainment industry.
Key takeaway - D’Amaro’s appointment reflects a different approach to succession planning within Disney, prioritizing a broader board involvement.
Opposing viewpoint - Concern exists regarding D’Amaro’s limited media experience, which some investors believe may hinder his effectiveness in addressing the entertainment sector’s complexities.
