James Gorman talks Disney succession, proxy fight


James Gorman talks Disney succession, proxy fight

Morgan Stanley CEO James Gorman said Thursday that he’s gearing up to join a succession planning committee at Disney, which will advise the board on choosing CEO Bob Iger’s successor.

Gorman is set to step down as Morgan Stanley CEO Jan. 1. He will join Disney’s board in February.

Disney announced last month that Gorman was joining the company’s board. The announcement also included the appointment of former Sky TV boss Jeremy Darroch, beginning in January.

The move was seen as a way to hold off a proxy fight by activist fund Trian and its chief, Nelson Peltz, although Trian voiced dissatisfaction with the appointments in a statement. Trian said it would push for Peltz and former Disney executive Jay Rasulo to join the board.

Gorman has won praise for how he managed the succession process at Morgan Stanley.

“Disney is forming a succession committee, which I’ll be joining,” Gorman told CNBC’s David Faber. “I don’t start as a director until February.” He added: “But I have an enormous amount of experience having run succession here on Morgan Stanley’s board.”

Gorman also noted that he’s dealt with activist investors before. “We have had a lot of battles in my life,” he said of the Disney proxy fight. “That doesn’t bother me one little bit.”

Disney said Gorman was referring to the succession committee the company announced in January. The company disclosed Gorman would join the panel in a securities filing last month.

Disney re-appointed Iger as CEO in November 2022, following the tumultuous tenure of his hand-picked successor Bob Chapek. Before he ended his previous reign as CEO, Iger renewed his contract multiple times. In July, the company extended Iger’s contract through 2026.

The company has faced a number headwinds in recent years, including box office flops and streaming losses. Earlier this year, Iger reorganized the company, laying off 7,000 employees while looking to cut $7.5 billion in costs.

Tune in: “CNBC Leaders: James Gorman” airs at 8 p.m. ET Friday on CNBC.



View Original Source Here

You May Also Like
Ripple CEO says SEC has lost sight of mission to protect investors

Ripple CEO says SEC has lost sight of mission to protect investors

Brad Garlinghouse, chief executive officer of Ripple Labs Inc., speaks during the…
How Disney turns over its parks between Halloween and winter holidays

How Disney turns over its parks between Halloween and winter holidays

A staple of Disney’s theme park’s celebrations, the giant Mickey pumpkin statue…

Texas hospitals prepare to administer Covid vaccine shots in less than three weeks

A worker passes a line of freezers holding coronavirus disease (COVID-19) vaccine…

Russia-Ukraine war is having a limited impact on Europe vacation bookings, experts say

Travelers booking luxury trips to Europe have not canceled amid the Ukraine…