The Disney CEO succession drama is reaching a major turning point. With Bob Iger stepping down at the end of the year, it seems the board is seriously committed to selecting a new leader.

The previous Disney succession process was frankly chaotic. Bob Iger repeatedly extended his term, creating a situation where potential successors were set up to fail. Although Iger retired at the end of 2021, just a year later Bob Chapek was dismissed, and Iger returned in an unprecedented turn of events. This time, to avoid repeating the same mistakes, they brought in a strong external leader.

James Gorman, who has become Chairman of Disney, served as CEO of Morgan Stanley for 14 years and has a track record of navigating through the post-Lehman shock crisis. His top priority is the CEO succession process this time. Gorman is not just selecting a successor but developing a succession plan that considers the overall stability of the organization. His experience at Morgan Stanley has led him to oversee a disciplined, multi-year succession process.

Within the company, four executives are vying for the top position. Josh D'Amaro, head of the Parks division, is seen as the front-runner, with a proven track record of pushing a $60 billion expansion plan. A charismatic leader with 27 years at Disney, he also enjoys strong support on Wall Street. Meanwhile, Dana Walden, head of the Television & Streaming division, is also a strong candidate; if chosen, she would become the company's first female CEO. Other candidates include Alan Bergman, head of the film studio, and ESPN President Jimmy Pitaro.

However, the mission assigned to the new CEO is quite heavy. They will need to monetize streaming strategies, shift from traditional TV, leverage AI, and make management decisions amid geopolitical uncertainties. Maximizing the value of brands acquired during Bob Iger’s era—such as Pixar, Marvel, and Lucasfilm—is also a key challenge.

An interesting aspect is the fate of the candidates who were not selected. Since each candidate oversees important divisions, the appointment of one could lead to others resigning. At Morgan Stanley, when a new CEO was appointed, the unsuccessful finalists were promoted to co-presidents as a retention strategy. Disney’s board is reportedly considering a similar approach.

The announcement of the new CEO was scheduled, but given the industry-wide upheaval, it’s a decision made amid significant change. The transition from Bob Iger to the next leader is not just about top management; it signifies a shift in leadership capable of responding to the broader structural changes in the entertainment industry.