Disney’s CFO Discusses Seamless Transition as Josh D’Amaro Steps Up to Lead Amid Exciting Changes
Disney’s Chief Financial Officer Hugh Johnston recently commended the company’s board for their careful selection process, which he believes led to an outstanding outcome.
“They really went through an extremely thorough process… It probably went on for about a year and a half. They looked internally, externally. They really pushed hard on the candidates, and I think came to a conclusion that is a terrific one,” Johnston stated Monday at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco, one of the first significant events following the announcement of the leadership transition. “You have Josh, who’s a terrific growth-oriented executive. You have Dana, who’s a terrific growth-oriented executive on the creative side. The fact that not only do we have Josh in place and looking forward to his leadership, but we have the entire team staying together is something that I think is a little bit unusual for corporate CEO successions.”
The board unanimously voted to elevate Disney Experiences Chairman D’Amaro to CEO, taking over from Bob Iger. Dana Walden, co-chair of Disney Entertainment, has been appointed as President and Chief Creative Officer, a newly established role. These appointments were announced on February 3 and will become official at Disney’s annual shareholder meeting on March 18. Iger will continue as a senior advisor until his current contract ends on December 31.
“Frankly, inside the company, both of those leaders have tremendous followership, and they work incredibly well together,” Johnston added when discussing the internal reaction to the news. “Internally, people are excited because both [D’Amaro and Walden] really do cut across businesses and have strong followership, not just within their own businesses, but more broadly. There’s a lot of energy there in terms of people being excited about Josh but also being excited about the fact that this process was also handled so smoothly.”
Johnston highlighted the contrast between the current succession and Disney’s historical challenges with leadership changes. “You all know some of the history of Disney and CEO succession, going all the way back to Michael Ovitz. This couldn’t have been more different than that. It was a really smooth, well-run process with minimal drama,” he remarked.
Johnston’s comments alluded to the tumultuous tenure of Michael Ovitz, who was brought on by former CEO Michael Eisner but was ousted after a brief and contentious period. Iger’s own approach to succession faced difficulties, leading to the controversial appointment of Bob Chapek in 2020, whose short-lived term ended with Iger returning as CEO.
The low-drama transition at Disney contrasts sharply with the recent merger of Paramount and Warner Bros. Discovery, which has captured headlines for its dramatic unfolding, including WBD’s termination of a deal with Netflix to facilitate the merger.
When asked about potential mergers and acquisitions at Disney, Johnston stated that Iger had already fortified the company through strategic deals, including the acquisitions of Pixar, Lucas Films, Marvel, and Fox. “We don’t need to do any substantive M&A,” he emphasized. “We can leverage what we have and build it out.”
He acknowledged the potential for smaller acquisitions to enhance capabilities but reaffirmed that Disney’s current focus would remain on operational excellence rather than integration of new entities. “Might we do some small tuck-in acquisitions or something to add a capability, or a hire? Yeah. But we don’t need to do substantive M&A,” Johnston concluded. “We can really focus ourselves not on integrating M&A but on just running the company and building the products and leveraging the IP better and better.”
More to come
