AceShowbiz - At the recent Morgan Stanley Technology, Media & Telecom Conference in San Francisco, Disney Chief Financial Officer Hugh Johnston praised the company’s board for executing a remarkably smooth and thorough CEO succession process. The transition, which positions Josh D'Amaro as the incoming CEO, reflects a strategic and carefully managed changeover that Johnston described as “a terrific one” after a year and a half-long search.

Johnston emphasized that the board undertook an exhaustive evaluation, examining both internal and external candidates with rigorous scrutiny. The decision to appoint Josh D'Amaro, currently Disney Experiences Chairman, as CEO was unanimous. Alongside Josh D'Amaro, Dana Walden, Disney Entertainment co-chair, was named President and Chief Creative Officer, a new role created to harness creative leadership. These appointments were publicly announced on February 3 and will take effect officially at Disney’s annual shareholder meeting on March 18.

Bob Iger, the outgoing CEO, will remain with the company as a senior advisor until his contract concludes on December 31. Johnston highlighted the strength of the leadership team’s cohesion, noting that having both Josh D'Amaro and Dana Walden in place, with their broad followership across Disney’s various business segments, is somewhat unusual for corporate CEO successions and bodes well for the company’s future.

“Inside the company, both of those leaders have tremendous followership, and they work incredibly well together,” Johnston said. “There’s a lot of energy and excitement internally about this transition because both Josh D'Amaro and Dana Walden have strong support not just in their own domains but company-wide.” He credited the process for being notably low in drama, contrasting it with Disney’s more turbulent CEO succession history.

Johnston referenced Disney’s past difficulties, such as the failed appointment of Michael Ovitz as president in 1995, which quickly ended with a costly severance and shareholder litigation. Similarly, Bob Iger’s prior succession planning was less smooth; after naming Bob Chapek as CEO in 2020, Iger had to return to the helm following Chapek’s ousting. In that context, the current transition stands out for its careful planning and minimal conflict.

This orderly leadership change comes at a time when the media industry is experiencing significant upheavals. By contrast, Disney’s succession news has been largely overshadowed despite its importance.

When questioned about the possibility of future mergers and acquisitions at Disney, Johnston said the company is well-positioned thanks to a series of strategic acquisitions overseen by Iger, including Pixar, Lucasfilm, Marvel, and Fox. These moves have built a substantial portfolio of intellectual property, placing Disney ahead of many competitors. “We don’t need to do any substantive M&A,” Johnston said. “Some of our competitors are signaling they do, but we can leverage what we have and build it out.”

He did leave open the possibility of smaller deals aimed at enhancing specific capabilities or talent acquisition, describing these as “tuck-in acquisitions” that would not disrupt the company’s focus. The priority for Disney remains running the business effectively and maximizing the value of its existing IP assets.