Before Disney named a new CEO, it made sure the CFO was staying

Good morning. The Walt Disney Company’s CEO transition is notable not just for who is ascending, but for how deliberately the company built financial stability around it by extending CFO Hugh Johnston’s contract months before a new CEO was even named.

Josh D’Amaro, a 28-year veteran of the company, took over as chief executive at Disney’s annual shareholders meeting on Wednesday, succeeding longtime CEO Bob Iger. Named to the role on Feb. 3, D’Amaro most recently served as head of Disney Experiences, which includes the company’s theme parks, cruise line, resorts and consumer products.

There was some praise for Iger on social media. “What you have built is not a career, it’s a LEGACY,” NBA star Chris Paul said in a post on LinkedIn.

Iger, who had a long career at Disney, served as CEO from 2005 to 2020, then returned in 2022 following the controversy-filled tenure of his first replacement, Bob Chapek. He will temporarily stay on as a senior advisor and board member, stepping down eight months ahead of schedule.

A potential merger between Paramount Global and Warner Bros. Discovery could increase competition for Disney (No. 46 on the Fortune 500). But D’Amaro could be well-positioned to lead growth. Under his leadership, Disney’s parks and experiences became the company’s primary profit engine, accounting for more than 70% of operating income despite representing under 40% of total revenue, Fortune reported. Streaming is the other major growth driver, following consecutive quarters of profitability.

In November, Disney extended Johnston’s contract through Jan. 31, 2029—before the new CEO was even announced. He joined Disney in 2023, following a long career at PepsiCo. Johnston has a “well-earned reputation as one of the best CFOs in America,” Iger said in a........

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