Walt Disney Co. installed Josh D’Amaro as chief executive Wednesday, beginning a new chapter for the storied Burbank entertainment giant.
Bob Iger passed the reins during Disney’s virtual annual meeting of shareholders, completing the company’s high-stakes and tightly choreographed changing of the guard. After spending two decades molding Disney into a media colossus, Iger segued into a senior advisory role, which will run through December when he officially retires.
The leadership shift comes amid an upheaval in Hollywood as traditional companies wage a desperate battle for survival.
“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 category of one,” D’Amaro said during a recorded segment broadcast 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 more than two-year internal bakeoff among high-ranking division leaders. Board members were impressed with his business acumen, charisma and his deep love for Disney and its storied history.
D’Amaro inherits a company that is beloved by millions, generates $94-billion-a-year in revenue and employs 230,000 people.
He faces enormous challenges as he steers the company through a turbulent media environment and tense geopolitics. The war in Iran prompted a sharp increase in fuel costs, which could become a drag on Disney’s critically important tourism business. Executives already already have signaled “headwinds” in international visitation at theme parks this year.
Lingering Middle East tensions also could weigh on Disney’s plans for a new Persian Gulf waterfront theme park and resort near Abu Dhabi.
D’Amaro, who served as parks and experiences chief until Wednesday, got his corporate start at Disneyland 28 years ago.
“Like so 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 years old 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 $60-billion, 10-year expansion program, but it must strike a balance by keeping attractions true to their nostalgic core. In Anaheim, the expansion could result in at least $1.9 billion of development.
Disney also must turbocharge the animation business, manage revenue declines from its traditional linear television channels, including ESPN and ABC, and fortify its streaming services to remain among the leaders in the field.
“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, films, and more in entirely new ways.”
He mentioned the company’s efforts to unify Disney+ and Hulu later this year.
Disney also must learn how to exploit new technologies while safeguarding its characters and franchises.
“We will continue to develop and embrace 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.”
Board members recognized that D’Amaro lacks deep connections among Hollywood’s writers and producers so they created a new management structure that elevates longtime television executive Dana Walden to chief creative officer and the company’s first woman president.
ESPN will continue to be managed by Jimmy Pitaro and Disney Entertainment, Studios chairman Alan Bergman will remain in his influential role overseeing film studios including production, marketing and distribution, and sharing oversight for streaming programming with Walden.
D’Amaro’s total compensation package is valued at about $40 million a year, including a $2.5 million annual base salary, $26.2 million in annual long-term stock incentives, a cash bonus and a one-time promotion award of $9.7 million.
Iger first stepped into the CEO role 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. Sports king ESPN spawned staggering profits, and Disney’s theme parks set industry standards.
Disney’s former Chief Executive 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, refreshed its TV executive bench, and provided a controlling stake in general entertainment streaming service Hulu. The acquisition also gave Disney access to fan-favorite franchises, including “Deadpool,” and James Cameron’s “Avatar.”
But the purchase left Disney saddled with debt just as the COVID-19 pandemic prompted production shutdowns and closures at theme parks and sports venues.
Iger initially passed the CEO baton to Bob Chapek in February 2020. Iger, then chairman, retired the following year but came back in November 2022 to 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 its film studios.
During the last two years, Disney has produced five franchise films that racked up more than $1 billion in worldwide ticket sales, including “Inside Out 2,” “Zootopia 2,” and “Avatar: Fire and Ash.”
Disney and Pixar’s latest animated film “Hoppers” has hauled in $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 success “Coco.”
The company is banking this year on several other films with blockbuster potential, including Disney and Pixar’s “Toy Story 5,” Lucasfilm’s “Star Wars: The Mandalorian and Grogu” and Marvel Studios’ “Avengers: Doomsday.”
“I would want to be known as someone who was given the keys to this kingdom and brought it to a place that even Walt would be proud of — more storytelling, more innovation, more risk‑taking, and more creation of happiness,” Iger said during a “The Rest is History” podcast last year.
During the meeting, D’Amaro saluted his predecessor and longtime boss.
“Bob, on behalf of our employees, cast members, shareholders, and fans around the world, thank you so much for your tremendous leadership, your steadfast support, and your countless contributions to The Walt Disney Co.,” D’Amaro said. “You’ve set an incredible example for all of us. … You will be missed.”
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