Fans are reflected in Disney+ logo during the Walt Disney D23 Expo in Anaheim, California in September 2022
The succession planning committee for Walt Disney has met six times this fiscal year AFP

Walt Disney Co. has appointed James Gorman, a board member and executive chairman of Morgan Stanley, to head its succession planning committee tasked with identifying a successor to long-serving CEO Bob Iger who plans to step down in 2026.

The company announced the decision on Wednesday as a major step in its leadership transition strategy, Reuters reported.

Gorman, who joined Disney's board earlier this year, brings extensive experience in succession planning, having overseen a similar process at Morgan Stanley, where he served as CEO from 2010 to 2023.

He will assume his role as executive chairman at Disney in December.

The search for a new CEO has been a pressing issue for Disney, particularly following the company's victory over activist investor Nelson Peltz in a proxy battle earlier this year.

Peltz had criticized Disney's performance in the streaming era and its approach to succession planning.

The board has extended Iger's retirement date multiple times, most recently asking him to return in 2022 after his chosen successor, Bob Chapek, was ousted after a brief tenure.

Iger, who originally served as Disney's CEO from 2005 to 2020, extended his contract to remain in the role until 2026, with a firm commitment to stepping down at that time.

"Succession planning is a top priority for the Board," said Disney Chairman Mark Parker.

"I look forward to working closely with James Gorman as we continue the important work of identifying and preparing the next CEO of The Walt Disney Company."

Alongside Gorman and Parker, the succession planning committee includes GM CEO Mary Barra and Lululemon CEO Calvin McDonald, both of whom will continue their roles.

The committee has convened six times in fiscal 2024 and is actively reviewing internal and external candidates for the CEO position.

Internal candidates are undergoing a rigorous preparation process, which includes mentorship from Iger, external coaching, and direct interaction with board members.

Among the top internal contenders are Disney Entertainment Co-Chairs Dana Walden and Alan Bergman, Disney Parks Chair Josh D'Amaro, and ESPN President James Pitaro.

Disney's board has discussed the CEO search at all of its scheduled meetings this year due to the urgency and importance of the decision as the company navigates its next chapter.