How a Scandal Shook Up Disney’s CEO Succession Race
The race to replace Bob Iger has begun.
As a battle ensues to overthrow current members of Disney’s Board of Directors, Wall Street is pressuring the company more.
Investors want to know who will call the shots once Iger departs Disney.
Now, recent reports have shown how one candidate has differentiated herself from the rest.
Here’s what Dana Walden has done to show she should be the next CEO of Disney and how a scandal helped her.
Setting the Table for Disney Succession
Currently, Disney lists three divisions consistently of four division heads.
Josh D’Amaro heads Disney Experiences, while Jimmy Pitaro is the Chairman at ESPN.
Then, we have the joint leadership of Co-Chairmen Dana Walden and Alan Bergman at Disney Entertainment.
Not coincidentally, these four people comprise much of the list of the likeliest candidates to replace Bob Iger as Disney CEO.
We also have outside contenders like Kevin Mayer and Thomas O. Skaggs, former Disney executives who now run Candle Media.
Then, we have activist investors Nelson Peltz’s and Isaac Perlmutter’s choice, former Disney CFO Jay Rasulo.
In short, all the players are on the board, and they know it. They’re currently quietly campaigning to run Disney.
Some of them currently hold better positions in this battle, and they know it.
That’s significant because all the candidates I’ve mentioned are currently under the microscope right now.
Any slip-up or misstep could be the difference between succeeding Bob Iger as Disney CEO and…being Jay Rasulo.
Nobody wants to be Jay Rasulo. During his ten-year job gap after Disney, he was persona non grata.
I joked when he returned that I’d need proof of life for him.
That’s how it often works for people who lose Disney’s Game of Thrones.
As a reminder, nobody heard from Bob Chapek for more than a year after his firing.
Realistically, the people who don’t succeed Iger are likely to leave Disney at some point over the next few years.
I say this because three of the candidates I just mentioned – Mayer, Rasulo, and Staggs – suffered this exact fate.
Dana Walden Puts Out a Fire
Based on these facts from Disney history, we know that every opportunity matters. And sometimes, opportunities take unusual forms.
Last year, ABC News faced the fallout from a shocking scandal.
Two of the hosts of GMA3, ABC’s anchor morning program, had engaged in an affair.
Scandalous tabloid reports quickly linked the duo at several romantic spots.
In December 2022, the news first leaked. By the end of January 2023, ABC News had fired both of them.
Coincidentally or not, NBC’s competitor made tremendous headway in 2023, earning better demo ratings for four straight weeks.
Critics assailed Kimberly Godwin, the President of ABC News, for her handling of the affair and its consequences.
As the Co-Chairman of Disney Entertainment, Walden oversees Godwin as one of her reports.
Godwin has enjoyed a remarkable career, becoming the “first black woman to lead a major American broadcast news network.”
Walden heard the criticism about Godwin from some of her other reports.
However, the Co-Chairman respected Godwin’s contributions.
Walden faced a different choice in satisfying critics without humiliating Godwin.
As this Hollywood Reporter article details, Walden pulled off something of a masterstroke with her handling of the crisis.
Walden effectively “layered” Walden by reorganizing ABC News and other aspects of the company.
Debra OConnell gained a promotion as President of News Groups and Networks.
In the process, Disney Entertainment looped Godwin out of the controversial spot where she wasn’t performing to Bob Iger’s satisfaction.
Walden’s Stealth Mission
The THR article mentions a poorly received party of powerful people in a too-hot building as the tip of the iceberg.
In truth, Godwin faced nothing but icebergs before this de facto demotion.
For that matter, Godwin remains employed at Disney in the same position, which has held for less than three years.
I’m sure those have felt like dog years to Godwin, as the GMA3 scandal drained any forward momentum she might have had.
What impressed people involved with the change is how deftly Walden handled a seemingly impossible situation.
First, the Co-Chairman alerted Godwin that a change was being considered.
Understandably, Godwin requested more time. Walden consented for a few weeks.
Once Iger and others determined that Godwin wasn’t making the requisite changes, Walden performed a stealth mission.
The Disney executive informed her underling that she was being layered.
Walden offered Godwin less than a day to decide whether the demoted woman would stay at Disney.
Had Walden waited any longer, the highly connected and respected newswoman would have leaked the story.
In the process, Disney would have been placed on the defensive in a volatile situation, one with terrible optics.
Godwin chose to stay in exchange for a two-year contract extension and a quote from her boss that praised her leadership.
Frankly, both requests were more than fair, and Walden agreed to them. Everyone behaved professionally here.
Why Walden Moved to the Front of the Line
However, the reporter here adds comments like these:
“While it’s clear that ABC News, which makes up a small fraction of Disney’s bottom line, would not be a factor in Walden getting Iger’s job that she so clearly desires, several more Godwin gaffes and controversies could’ve hurt her chances.”
Here’s another: “ABC News boss Kim Godwin was ready to welcome two very special guests: Disney CEO Bob Iger and the person who is the leading candidate to one day succeed him, Dana Walden…”
That’s an odd pair of comments in a seemingly neutral article. But they reinforce a growing perception among Hollywood analysts.
The people who write about entertainment for a living are convinced that Walden is the leader in the clubhouse to run Disney.
I update my succession power rankings about once a quarter and have recently described Walden in similar terms.
Still, I cannot help but wonder whether an echo chamber is unfolding here.
This article even notes the concern I have. Walden came from Fox, one of the few executives from the acquisition who have stayed.
Questions persist about her loyalties to Disney, which I think we’d all agree is an essential aspect of taking the job.
Even Chapek, for all his faults, dedicated 30 years of his life to Disney. Walden showed up in 2019.
Is Dana Walden Leading the Succession Race?
You may wonder why Walden has moved to the front of the line.
The simple answer is that she can perform these stealth missions in a way that pleases Iger and reminds him of himself.
Also, as a former PR executive, Walden understands how to work under that microscope and excel.
Disney needs that more than ever now that it’s become a part of the culture wars.
Iger’s special skill at Disney during his first tenure had been PR savvy. He knew how to make himself and his company look good.
The seas have been rougher during this return tenure, which likely makes Iger prioritize PR expertise that much more.
While I still favor Josh D’Amaro, he’s also the golden child, a beloved figure who hasn’t faced much controversy.
That x-factor seems to play in Walden’s favor, as she just handled a treacherous situation with aplomb.
Objectively, despite a lack of Disney history, Walden appears to be in the lead right now.
Thanks for visiting MickeyBlog.com! Want to go to Disney? For a FREE quote on your next Disney vacation, please fill out the form below, and one of the agents from MickeyTravels, a Diamond Level Authorized Disney Vacation Planner, will be in touch soon!
Feature Photo: Disney