The CEO succession planning process at the Walt Disney Co. finally came to a close this week, as the media giant announced who will steer the ship after the (second) departure of CEO Bob Iger.

In one of the most closely watched CEO races in years, Disney named Josh D’Amaro, the chair of Disney Experiences, as its next leader. The pick lit up social media, particularly in HR circles, with many people professionals commenting on how the years-long CEO drama at Disney highlights the succession planning frustrations facing the profession.

CEO succession planning: a process fraught with challenges

In 2020, CEO Bob Iger stepped down from the CEO role he had held since 2005 after announcing and then delaying his retirement four times. He was succeeded by someone he “hand-picked”: Bob Chapek, the then-chair of Disney parks. Yet, according to CNBC, the succession plan allowed Iger to remain as executive chairman for nearly two years—and he was reluctant to even give up the CEO office to his successor.

Within three years, the board fired Chapek and asked Iger to step back into the CEO role. Chapek has referred to his time in the position as “hell,” while Iger, the outlet reported, says his selection of Chapek was a significant career mistake.

“Some Disney executives have privately speculated that Iger chose Chapek because he wouldn’t rival him in either charisma or celebrity—or, more cynically, because he was unlikely to eclipse Iger’s glittering record at the company,” CNBC stated in its expansive 2023 piece on the succession drama, based on more than two-dozen interviews with those associated with the process. “What’s clear is Iger didn’t know Chapek as well as he should have.”

The high-profile drama highlights a struggle many HR professionals know well: balancing the interests of an outgoing leader with those of an incoming executive. It’s a process that should be led by the board—with significant contributions from the CHRO, Ani Huang, president and CEO of the Center On Executive Compensation, a division of the CHRO Association, recently told HR Executive.

“CEO succession is a unique role for the board, and one that the CEO shouldn’t be in charge of,” Huang says, noting the association’s research about the outsize influence HR execs can play on successful CEO succession planning. “Directors identified CHROs as more critical to certain parts of the process than outgoing CEOs, including owning the process itself.”

What a CEO pick communicates

Before the D’Amaro announcement, there was significant speculation that longtime Disney exec Dana Walden, a veteran of the company’s film and entertainment sides, would get the nod. Yet, the selection of D’Amaro—who has overseen the operations of Disney’s 12 theme parks and dozens of hotels around the globe—prompted analysis of where the company is prioritizing its investment, both operationally and with its public image.

Logistically, D’Amaro’s success in the Experiences division highlights what will continue to be a Disney priority: CNBC reports the unit recently earned more than $10 billion in one quarter for the first time. “The division’s growth has left it with plenty of room to run,” CNBC says, an opportunity commentators speculate will expand under D’Amaro’s leadership.

His selection also suggests the company is aiming to up its investment in customer service, owing to D’Amaro’s theme park leadership. It’s a reality reflected across LinkedIn, where Disney employees and associates of D’Amaro’s largely celebrated the news, aligning their vision of the company’s future with D’Amaro’s past, people-centric leadership.

“It’s rare in any large company for frontline employees to know their CEO, but our cast are excited today because they know and love Josh,” wrote one vice president of park operations on LinkedIn.

Being proactive about C-suite retention

While Walden wasn’t selected for the top job, she was given a newly created title—chief creative officer—and will become Disney’s next president. She will be the first female to hold that title in the company’s history.

Now, the pressure is on to retain her, according to a story in Bloomberg this week.

C-suite departures are common after a hotly contested CEO succession, but Walden’s new titles suggest Disney is being proactive about keeping her and her supporters on board.

“The elevation was a clear sign that Disney doesn’t want to lose a seasoned industry veteran and one of the most powerful women in Hollywood,” Bloomberg wrote.

Commentary in Forbes this week agreed that the strategic elevation of Walden was a “smart” move—with a contract that doesn’t expire until 2030—yet acknowledged another reality plaguing CEO succession across industries: “Once again, a woman has been left on the corporate altar.”

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