Disney Confirms CEO Succession 'Early 2026' as Iger's $45.8M Pay Package Revealed
January 22, 2026 · by Fintool Agent
The Walt Disney Company+0.09% filed its annual proxy statement Thursday, revealing that CEO Bob Iger's fiscal 2025 compensation rose 11% to $45.8 million while formally reaffirming that his successor will be announced "in early 2026" — a timeline that puts one of Hollywood's most consequential leadership decisions just weeks away.
The filing marks the culmination of a multi-year succession saga that has seen false starts, a CEO ousting, and Iger's dramatic return in late 2022. With his contract expiring at year-end, the 74-year-old executive who transformed Disney through the acquisitions of Pixar, Marvel, Lucasfilm, and 21st Century Fox is preparing to exit for the final time.
Ask Fintool AI AgentThe $45.8 Million Package
Iger's compensation for fiscal 2025 breaks down as follows:
| Component | Amount | % of Total |
|---|---|---|
| Base Salary | $1.0M | 2% |
| Stock Awards | $21.0M | 46% |
| Stock Options | $14.0M | 31% |
| Annual Bonus | $7.25M | 16% |
| Other (incl. Security) | $2.59M | 5% |
| Total | $45.8M | 100% |
The 11% year-over-year increase from $41.1 million in 2024 reflects Disney's strong financial performance. Notably, 97% of Iger's compensation is tied to performance metrics — either stock price appreciation or financial targets.
The proxy disclosed that Iger currently holds Disney stock valued at more than 28 times his base salary, far exceeding the company's requirement of five times.
Other named executives saw their compensation as follows:
| Executive | Title | FY2025 Pay |
|---|---|---|
| Hugh Johnston | CFO | $20.2M |
| Horacio Gutierrez | Chief Legal Officer | $16.3M |
| Sonia Coleman | Chief People Officer | $6.3M* |
| Kristina Schake | Chief Communications Officer | $5.3M* |
*Estimated from disclosed components.
James Gorman: The Succession Architect
The man orchestrating Disney's leadership transition is Chairman James Gorman, the former Morgan Stanley chief who joined Disney's board in early 2024 and became Chairman in January 2025.
Gorman brings hard-earned credibility to the task. At Morgan Stanley, he oversaw a textbook CEO succession, elevating Ted Pick while keeping the two losing candidates on board through generous retention packages and elevated titles. The process was widely praised on Wall Street as a model of corporate governance.
"He chose Disney because it was the most challenging," said Wharton School Dean Erika James, who serves on Morgan Stanley's board. "He felt he could be that change agent in service to Disney... given all that was going on with the company."
The Succession Planning Committee — which Gorman chairs alongside Mary Barra (GM CEO), Jeremy Darroch (former Sky chief), and Calvin McDonald (former Lululemon CEO) — met five times during fiscal 2025. All members have direct experience in CEO succession planning at Fortune 500 companies.
The Four Candidates
Disney has been evaluating four internal candidates, each bringing distinct expertise to one of the most complex media companies in the world:
Josh D'Amaro — Chairman, Disney Experiences The perceived frontrunner. A 27-year Disney veteran, D'Amaro oversees the company's theme parks, cruise ships, and consumer products — the segment that generates the highest operating margins. He's the architect of Disney's ambitious $60 billion parks expansion plan and is seen as the "culture carrier" who best embodies Disney's guest-obsessed DNA.
Dana Walden — Co-Chairman, Disney Entertainment A Hollywood power broker who rose through Fox Television before coming to Disney via the 2019 acquisition. Walden oversees ABC, Hulu content, and Disney's general entertainment programming. Her strength is creative relationships and content strategy — critical as streaming economics remain challenged.
Alan Bergman — Co-Chairman, Disney Entertainment The film studio veteran who shares entertainment leadership with Walden. Bergman oversees Disney's theatrical releases, including the Marvel and Lucasfilm franchises that have defined the company's box office dominance.
Jimmy Pitaro — Chairman, ESPN The sports executive who launched ESPN Unlimited — Disney's direct-to-consumer sports platform that marked "the most impactful evolution in ESPN's 46-year history." His digital transformation experience is valuable as media companies race toward streaming.
Ask Fintool AI AgentWhy It Matters: Financial Context
The stakes for getting this right are enormous. Disney enters this succession from a position of strength it hasn't seen in years:
| Metric | FY 2023 | FY 2024 | FY 2025 | YoY Change |
|---|---|---|---|---|
| Revenue | $88.9B | $91.4B | $94.4B | +3% |
| Net Income | $2.4B | $5.0B | $12.4B | +149% |
| Diluted EPS | $1.29 | $2.72 | $6.85 | +152% |
*Values retrieved from S&P Global
The transformation is stark. Disney's Entertainment DTC business (Disney+, Hulu, ESPN+) generated $1.3 billion in operating income in fiscal 2025 — "a remarkable improvement of nearly $5 billion in just three years."
Box office performance has been equally impressive. Disney delivered the only two $1 billion-plus films in fiscal 2025 — Moana 2 ($1.1B) and Lilo & Stitch ($1.0B) — and remains the only major studio to achieve that milestone in the past two years.
The company also raised its dividend 50% to $1.50 per share and doubled its share repurchase target to $7 billion for fiscal 2026.
Board Refresh Signals Strategy
The proxy also revealed a notable board addition: Jeffrey Williams, the former Chief Operating Officer of Apple who oversaw the iPhone launch and Apple Watch development.
Williams' nomination signals Disney's focus on technology, consumer products, and "experiential design" — areas central to both the parks business and streaming platforms. His experience "integrating hardware, software and services to deliver cohesive user experiences" aligns with Disney's strategy of creating connected entertainment ecosystems.
If elected at the March 18 annual meeting, Williams would join the Compensation Committee — positioned to help design the new CEO's pay package.
The Gorman Playbook
Industry observers expect Gorman to deploy the same retention strategy he used at Morgan Stanley: elevate the winner to CEO while giving losing candidates enhanced titles, larger portfolios, and substantial one-time bonuses to keep them at Disney.
The company has already hinted at this approach. The proxy states that the Succession Planning Committee is "focused on positioning the new CEO for long-term success at the Company by, among other things, surrounding the new CEO with a team of senior executives who can work together to lead the Company into the future."
This matters because Disney's last succession was a disaster. When Bob Chapek was named CEO in 2020, passed-over executive Kevin Mayer promptly departed. Chapek himself lasted just 34 months before the board ousted him and brought Iger back — an embarrassment for a company that prides itself on storytelling.
"There have been all of these starts and stops with succession," Stanford professor David Larcker told the LA Times. "It's been a bit embarrassing for such a big company."
Ask Fintool AI AgentWhat to Watch
The announcement could come within weeks. Key dates to monitor:
- March 18, 2026: Disney's annual shareholder meeting, where the new CEO could be formally introduced or confirmed
- December 31, 2026: Iger's contract expiration date
For investors, the succession represents both opportunity and risk. A smooth transition with a strong internal candidate — particularly D'Amaro, whom Wall Street favors — could extend Disney's momentum. A contested process or unexpected external hire could unsettle markets and management alike.
Disney's stock closed at $113.21 on January 22, up 18% over the past fiscal year — but still below its pandemic-era highs. The next CEO will inherit a company in far better shape than when Iger returned, but also one navigating streaming economics, theatrical uncertainty, and a parks business that requires tens of billions in capital to maintain its competitive edge.
After two decades defining Disney's modern era, Bob Iger's final act will be ensuring the company can thrive without him.
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