Disney’s new CEO must remember its core business is simple: creating magic

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James Gorman was named Disney’s board chair this week. He has a deadline of naming a new CEO in early 2026

An inflatable Disney+ logo stands at a press event ahead of launching a streaming service in the Middle East and North Africa, at Dubai Opera in Dubai, United Arab Emirates, on June 7, 2022.embarks on its long-awaited high-profile search for a new CEO, it should have one overriding guiding principle: Don’t let recent history repeat itself.

Despite those creds, Mr. Gorman and the committee cannot afford to forget what Mr. Chapek never understood: Disney’s core business is creating magic. Everything else – finance, technology, operations – exists to serve that end, not the other way around. A banker by training, he surrounded himself with like-minded pencil-pushers who flipped the balance of power, marginalizing Disney’s creative core and putting finance and tech people in charge.

Pouring salt into the wound, Mr. Chapek insulted loyal Disney theme-park customers by suggesting they were costing the company money by using their privileges too often. Customers were outraged that the company’s loyalty programs, for which they paid a premium, were being used to criticize them.

 

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