According to Disney’s advertisementTwo-time CEO Iger will step down from the board’s powerful executive committee after next month’s annual shareholder meeting on March 18, and he will leave entirely at the end of the year. After D’Amaro passes the chief-executive baton next month, Iger’s job will shift to an advisory role. In the interim, the four-decade veteran leader report “exclusive” to the board where he will remain as a member and stand for re-election before investors at the shareholder meeting in March.

That’s a big change from when Iger last left the corner office. In comparison, when Disney TEACH former CEO Bob Chapek in February 2020, Iger maintains a daily full-time role as executive chairman and retained control over the management of the company’s creative efforts. Disney named Susan Arnold as chairman in 2021, but brought Iger back in November 2022 for his second stint as CEO after the dissolution of the company.

This time, D’Amaro will serve as CEO with ex-Morgan Stanley chief James Gorman as chairman of the board. Gorman, a Wall Street veteran with a deft touch for CEO transitions, is named Disney chairman in 2025, after leading the succession planning committee since 2024 and setting the stage for the official transition this week.

This structure, with D’Amaro as CEO, Gorman as chairman, and Iger gracefully brought to the exit, is the type of structure that usually allows for a smooth transition and a “clean break,” said board advisor and attorney Richard Leblanc. That’s what boards usually strive for in an orderly succession, he said.

“There’s always pressure on the new CEO when the old CEO is there to not make any sudden moves, and continue the CEO’s legacy,” Leblanc said. Conversely, when the old CEO moves on, “They exit the company so the new CEO can find their way and implement change without feeling like someone is looking over their shoulder.”

As for compensation, D’Amaro’s package includes a base salary of $2.5 million, a target annual bonus amount of 250% of $6.25 million, and an annual long-term award of $26.25 million, according to a FILING with the Securities & Exchange Commission. He will also get a one-time bonus of $9.7 million for his promotion from Disney Experiences Chairman to CEO of the business. The total value of the grant date of his package, including a one-time award and the claim of absolute payments, is about $44.7 million, although the lion’s share of his salary depends on hitting certain financial thresholds and will only pay over the course of several years. Last year, Iger’s total compensation appreciated for about $45.8 million.

at Disney whole sequence The process is more formal these days, said Arpita Agnihotri, a strategy expert and associate professor at Penn State who wrote a case study on Disney’s CEO planning. With Gorman heading the succession committee, Iger appointed four internal candidates for the CEO role, and trained them equally well, and the board reached a consensus on the best candidate for the job, he said.

“There is clarity about who will run this company,” Agnihotri said.

There is always a lingering “invisible hand” of the former CEO whenever there is a major transition of a prominent executive, Agnihotri said. And in the short term, D’Amaro is likely to take Iger’s advice and counsel and consider it valuable. But once Iger is gone, D’Amaro can absolutely run the show, and he has a chance to convince the shareholders that he is the right choice, as he convinced the board, he explained. If that happens, the invisible hand will retreat, Agnihotri added, but investors and market watchers will be watching Disney closely to make sure there’s no repeat of the last time the board tried to replace Iger.

“Everybody burns their fingers,” Agnihotri said. “Shareholders, boards, and other stakeholders will be paying close attention.”

An important role for Dana Walden

He noted that the appointment of Dana Walden as president and chief creative officer was also an important note in the CEO transitional chord. While D’Amaro has the credibility as a financial expert and deep expertise in resorts and parks, Walden has the creative chops to counter any potential criticism that the board got it wrong by appointing a financially minded CEO to lead a creative company.

“In my opinion, he will be the new CEO’s right-hand man,” Agnihotri said. Investors want assurances that creativity won’t slow down as the company seeks to develop its Disney+ streaming service as a major revenue multiplier for Disney — and to compete with Netflix.

According to Walden’s offer letter, his salary includes a $3.75 million annual salary, a target bonus of $7.5 million, an annual long-term incentive award of $15.75 million, and a one-time award tied to his promotion worth $5.26 million. The grant date value of his total compensation package, including a one-time award, was approximately $32.26 million, although his awards vest over several years and are payable only if he hits key performance hurdles.

It is not surprising that Disney went from a duality with an executive chair and a CEO to a unitary command structure with a CEO and an independent board chair, said Leblanc. Disney’s board wants to do it right, he said. Stating that he was speaking in general and in no way referring to Iger, Leblanc noted that when an outgoing CEO hangs on as executive chair, “It’s hard for a new CEO to make their imprimatur on the company.”