Morningstar

Disney CEO Extends Contract; Successor Search Ongoing

We are maintaining our fair value estimate as Iger agrees to stay on at the wide-moat firm until July 2019.

Securities In This Article
The Walt Disney Co
(DIS)

The need for the extension arose from the forced resignation of former COO and heir apparent Thomas Staggs whom the board pushed out last April after refusing to designate him as the next CEO. While there have been a number of rumored candidates including board member and Facebook COO Sheryl Sandberg, CBS CEO Les Moonves, and former News Corp President Peter Chernin, no interviews or discussions with potential candidates have been leaked. We believe that the board is searching for someone with an entertainment background who is comfortable navigating a media landscape that is increasingly digital. However, there are not many candidates that fit these criteria who also have experience managing a firm as large and complex as Disney, thus the need for more time and the contract extension.

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About the Author

Neil Macker, CFA

Senior Equity Analyst
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Neil Macker, CFA, is a senior equity analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers media/entertainment and video game publishers.

Before joining Morningstar in 2014, Macker was a senior equity research associate for FBR & Co., where he covered the telecommunications services sector. Previously, he was an associate equity analyst for R.W. Baird and completed the summer associate rotational program at UBS Investment Bank. Before attending business school, Macker held analytical roles at Corporate Executive Board and Nextel.

Macker holds a bachelor’s degree from Carleton College, where he graduated cum laude, and a master’s degree in business administration from The Wharton School of the University of Pennsylvania. He also holds the Chartered Financial Analyst® designation.

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