Walt Disney Co. named Josh D'Amaro as CEO on Wednesday, beginning a new chapter for the storied Burbank entertainment giant.
Bob Iger passed the reins during Disney's virtual annual shareholder meeting, completing the company's high-stakes and carefully choreographed changing of the guard. After spending two decades building Disney into a media colossus, Iger moved into a senior advisory role, which will run through December, when he officially retires.
The leadership change comes amid upheaval in Hollywood as traditional companies wage a desperate battle for survival.
D'Amaro, in his first speech to shareholders, pointed to Disney's signature storytelling as its competitive advantage.
“While others in our industry are consolidating just to compete, or struggling to be relevant in a fragmented and disrupted world, Disney is in a class of one,” D'Amaro said during a video segment at the meeting. “This next chapter will be driven by staying focused on world-class creativity, enhanced by technology, bringing unforgettable stories to audiences wherever they are.”
D'Amaro, 55, becomes the ninth leader in Disney's 102-year history. He was selected last month by Disney board members after a two-year internal dispute among the division's senior leaders. Board members were impressed with his business acumen, charisma, and deep love of Disney and its legendary history.
D'Amaro inherits a company loved by millions of people. It generates $94 billion a year in revenue and employs 230,000 people.
He faces enormous challenges as he steers the ship through a turbulent media environment and tense geopolitics. The war in Iran caused a sharp rise in fuel costs, which could become a drag on Disney's critically important tourism business. Executives have already noted “headwinds” in international visits to their U.S. theme parks this year.
Lingering tensions in the Middle East could also weigh on Disney's plans for a new oceanfront theme park and resort in the Persian Gulf near Abu Dhabi.
D'Amaro, who served as head of parks and experiences until Wednesday, began his corporate career at Disneyland 28 years ago.
“Like many of you, my connection to Disney goes back to my childhood, long before I began my career here,” D'Amaro told shareholders. “I grew up in a Disney family. We watched 'The Wonderful World of Disney' on Sunday nights. I was 10 when my family visited Disneyland for the first time…Disney has always been a place of imagination, innovation and infinite potential.”
Disney previously announced a 10-year, $60 billion expansion program, which D'Amaro has led. But executives must strike a balance by keeping attractions true to their nostalgic core. In Anaheim, the expansion could generate at least $1.9 billion in development.
Disney must also continue to grow its animation business and manage declining revenue from its traditional linear television channels, including ESPN and ABC. You need to boost your streaming services with compelling movies and TV shows to stay competitive with Netflix and other leaders in the field.
Disney teased upcoming fan favorites, including the May release of Lucasfilm's “Star Wars: The Mandalorian & Grogu,” a “Bluey” feature film (the children's show features an animated puppy, a blue heel) and a “Lilo & Stitch” movie sequel due in 2028.
Streaming is key to Disney's future, D'Amaro said.
“Disney+ will continue to evolve beyond a traditional streaming service to become the digital centerpiece of our company,” D'Amaro said, calling the service “a portal that connects our stories, experiences, games, movies and more in entirely new ways.”
The company plans to unify Disney+ and Hulu later this year.
Disney must also continue to incorporate technology while safeguarding its characters and franchises.
“We will continue to develop and adopt new technologies to empower our storytellers, but never at the expense of our characters and worlds, our creative partners or the trust people place in us,” D'Amaro said. “Because Disney, at its core, is a company that celebrates human creativity.”
Wednesday also saw a company reorganization, shaped by Iger, D'Amaro and Disney's board of directors.
Board members acknowledged that D'Amaro, who has spent most of his career in the parks division, lacks deep connections among Hollywood writers and producers. They elevated veteran television executive Dana Walden, who had been vying for the top job, to the newly formed position of chief creative officer and the company's first female president.
ESPN will continue to be managed by Jimmy Pitaro and Disney Entertainment. Studios President Alan Bergman will remain in his influential role overseeing the film studios, including production, marketing and distribution, and will share oversight of streaming programming with Walden.
D'Amaro's total compensation package is valued at about $40 million per year, including an annual base salary of $2 million, $26.2 million in annual long-term stock incentives, a cash bonus and a one-time promotion award of $9.7 million.
“Josh is a wonderful choice to lead Walt Disney Co.,” Iger said in a pre-recorded video. “He has a passion for our businesses and brands, respect for our people and appreciates what makes this company so unique.”
Iger is wrapping up an unprecedented 52-year career at ABC and Disney.
He first took over as CEO in 2005; His first 15 years were almost magical.
Iger led acquisitions of Pixar Animation, Marvel Entertainment and Lucasfilm, the studio behind “Star Wars,” that turned Disney into a blockbuster machine. The king of sports, ESPN, generated staggering profits and Disney theme parks set industry standards.
Former Disney CEO Bob Iger will stay on through the end of the year as a senior advisor.
(Jay L. Clendenin / Los Angeles Times)
His decision to buy much of Rupert Murdoch's 21st Century Fox, a $71 billion deal that closed in 2019, boosted Disney's television production, revamped its TV executive bench and provided a majority stake in the general entertainment streaming service Hulu. The acquisition also gave Disney access to fan-favorite franchises, including “Deadpool,” “The Simpsons” and James Cameron’s “Avatar.”
But the purchase left Disney in debt just as the COVID-19 pandemic caused production stoppages and closures of theme parks and sports venues. It would take Disney several years to recover.
Iger initially passed the CEO baton to Bob Chapek in February 2020. Iger, then president, retired the following year, but returned in November 2022 a mess. At the time, the company was losing billions of dollars on its shift to streaming, but that unit is now profitable.
Iger spent the next three years focusing on four business pillars, including improving the quality and profitability of his film studios.
Over the past two years, Disney has produced five franchise films that have racked up more than $1 billion in ticket sales worldwide, including “Inside Out 2,” “Zootopia 2” and “Avatar: Fire and Ash.”
Disney and Pixar's latest animated film, “Hoppers,” grossed $46 million at the domestic box office in its opening weekend, marking the highest theatrical debut for an original animated film since Disney's 2017 hit “Coco.”
The company is banking on several other movies with blockbuster potential this year, including Disney and Pixar's “Toy Story 5,” “Star Wars: The Mandalorian & Grogu” and Marvel Studios' “Avengers: Doomsday.”
“I would like to be known as someone who was given the keys to this kingdom and took it to a place that even Walt would be proud of: more storytelling, more innovation, more risk-taking and more creating happiness,” Iger said during a “The Rest is History” podcast last year.
During the meeting, Iger appeared in a pre-recorded video celebrating the many highlights of his career. Clips were shown from his puppy years, when Iger was a news anchor with thick black hair. His journey was outlined, including his orchestration of multi-million dollar acquisitions that strengthened Disney with more characters and franchises.
Iger, 75 and now graying, concluded by thanking shareholders “for the trust they placed in me, for the memories we created together and for allowing me the honor of serving,” he said. “It has meant more to me than I can say.”
Animated fairy dust sparkled on the screen, courtesy of the fairy Tinker Bell.
“Bob, on behalf of our employees, cast members, shareholders and fans around the world, thank you so much for your tremendous leadership, steadfast support and countless contributions to The Walt Disney Co.,” D'Amaro said, when the handover was completed.
“You have set an incredible example for all of us… You will be missed,” D'Amaro said.
There was little fanfare during the business portion of the investor meeting.
The company's list of directors was elected with 93% of the votes. Shareholders also approved executive compensation packages with about 85% of the vote.
Shareholder-led proposals to require reporting on charities eligible for Disney's giving program, a review of the company's accessibility practices at its theme parks for disabled guests and a push for cumulative voting at future meetings failed to gather support.
Disney shares closed at $99.41, down about 1% on the day.
