The corporate landscape is littered with examples of leadership transitions gone awry, often complicated by the lingering presence of a former chief executive. Yet, Bob Iger’s latest departure from Disney, nine months ahead of his contract’s conclusion, appears to be a deliberate effort to avoid such pitfalls, positioning his successor, Josh D’Amaro, for an unencumbered start. This move contrasts sharply with Iger’s previous exit, which saw him remain as executive chairman for two years, a period that ultimately culminated in his unexpected return as CEO in November 2022 after Bob Chapek’s ouster.
This time, the intention is to provide D’Amaro with sufficient time to acclimate before Iger fully severs ties at the end of the year, transitioning to a senior advisor role. Such a clean break is frequently cited as crucial for new leadership, preventing the awkward dynamic where a predecessor’s shadow looms large over strategic decisions. The concept of an executive chairman, while sometimes serving a valuable advisory function, can also prove to be a “Faustian bargain” for a new CEO, potentially leading to conflicts and a lack of clarity regarding ultimate authority. The reported $45 million payout associated with Iger’s advisory role, meanwhile, highlights the substantial financial considerations often involved in these high-level transitions.
The history of celebrated CEOs returning to their former posts often yields mixed results. Figures like Procter & Gamble’s A.G. Lafley, Twitter’s Jack Dorsey, and Howard Schultz at Starbucks all experienced second tenures that, for various reasons, did not always replicate their initial successes. Ken Lay’s disastrous return to Enron serves as a stark reminder of the potential for catastrophic outcomes. While Bob Iger’s recent return saw him implement cost-cutting measures and refocus the company, Disney’s stock has underperformed the broader market, and its top-line growth has been modest. This underscores the notion that even highly regarded leaders face significant challenges upon returning, and the myth of an indispensable “genius” CEO can be a dangerous one.
The increasing complexity of the global business environment, from geopolitical shifts to the transformative impact of AI on operations, has led some to consider alternative governance structures. The pressures on modern CEOs are immense, often requiring them to act more like chief operating officers navigating turbulent waters. This evolving landscape has, in some instances, prompted discussions around co-CEO models or the establishment of an external, vision-setting executive chairman role. However, in Disney’s current situation, the emphasis appears to be on ensuring a clear runway for the incoming chief, an acknowledgement that the most critical task now is to facilitate the success of the next leader.
Beyond corporate boardrooms, the broader economic and technological landscape continues to evolve rapidly. Critical minerals, according to Vice President JD Vance, have joined oil as foundational resources for the economy, potentially even surpassing the impact of digital investments. Meanwhile, the AI sector is witnessing substantial salary hikes, with communications professionals earning up to $400,000, as investors grow more skeptical and consumers express increasing concern about potential job displacement. Recent Pew research indicates that roughly half of Americans are more apprehensive than enthusiastic about AI’s advancements. These broader trends suggest a period of significant re-evaluation across multiple industries, creating a challenging yet potentially transformative environment for new leadership at major corporations like Disney.
