James Gorman Unfazed by Potential Proxy Fight
James Gorman, Chairman and CEO of Morgan Stanley, recently expressed his confidence in the face of a potential proxy fight at Disney. Gorman, who is set to join Disney’s board of directors, discussed the brewing battle with activist investor Nelson Peltz during an interview with CNBC.
Peltz’s investment firm has nominated Gorman, along with former Disney CFO James Rasulo, for board seats. In response to this development, Disney has announced that a board committee will consider the applications ahead of the annual shareholder meeting, which is scheduled for early 2024.
Gorman’s Perspective on the Conflict
In spite of the tension between Disney and the activist investors, Gorman remains unperturbed. He shrugged off concerns regarding the skirmish, stating, “That’s all right.” Additionally, he confirmed his participation in the succession committee of the Disney board, which has been tasked with selecting CEO Bob Iger’s successor.
Gorman’s experience overseeing a CEO transition at Morgan Stanley has equipped him for the task at Disney. He emphasized his preference for a complete handoff rather than maintaining an active role after stepping down, a path often taken by many CEOs and boards.
Learning from Previous CEO Transitions at Disney
Gorman addressed Disney’s historical challenges in executing successful CEO transitions. He emphasized his strategic transformation efforts in his current role and expressed his willingness to draw from that experience to support Disney’s succession process. Gorman acknowledged that he did not want to prejudge the situation, but hoped to provide valuable insights based on his own experiences.
Disney has faced previous difficulties in effectively managing CEO successions. Former CEO Bob Iger had repeatedly signaled his intention to step down but ultimately postponed his departure, leading to Chapek assuming the role amidst the onset of the Covid pandemic. Similar challenges were evident during the transition from Michael Eisner’s tenure. As a result of a shareholder revolt in 2004, Eisner was stripped of his chairman title.