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Succession, recession and DEI talk. What to expect from Disney’s annual meeting

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Succession, recession and DEI talk. What to expect from Disney’s annual meeting

Last year, Walt Disney Co.’s annual shareholder meeting was fraught with tension as a billionaire activist investor sought to shake up the boardroom and change the course of the company.

This year, by comparison, will be less charged.

The Burbank media and entertainment company is coming off a strong year for its studio business, with hit films “Inside Out 2,” “Deadpool & Wolverine” and “Moana 2” each grossing more than $1 billion globally. Disney movies grossed an overall worldwide box office of more than $5 billion in 2024.

Disney also reached profitability for the first time in its streaming businesses, which include Disney+, Hulu and ESPN+.

But the company faces questions about softer results in its theme parks division, which has become Disney’s main economic driver. Disney has also recently tried to stay out of political culture wars, particularly as the Trump administration has targeted diversity, equity and inclusion efforts within corporations.

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Ahead of the company’s shareholder meeting Thursday morning, The Times spoke with analysts and investors about what they want the company to address.

The CEO succession plan

Though Disney has signaled it won’t name a successor to Chief Executive Bob Iger until early 2026, investors and analysts are eager for more details about how the search is progressing.

Disney Entertainment Co-Chair Dana Walden, fellow Entertainment Co-Chair Alan Bergman, parks, products and experiences Chair Josh D’Amaro and ESPN boss James Pitaro are all seen as potential internal successors.

Disney’s newly appointed chairman of the board, former Morgan Stanley executive chairman James P. Gorman, leads the CEO succession planning committee. The company said in its proxy statement that management succession planning “remains a top priority for the board.”

Finding the right successor for Iger, 74, is key to the company’s future stability. The firm fumbled in its last attempt to find a replacement for Iger; now-former CEO Bob Chapek lasted less than three years.

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Brian Mulberry, client portfolio manager at Zacks Investment Management, began reducing the firm’s Disney shares after Iger’s departure. Though the firm’s portfolio does not currently include shares of Disney, Mulberry is keeping a close eye on the stock price and wants to get clarity on some of the company’s financial issues before coming to a new position.

“With Bob Iger on his way out, ‘Who’s going to right the ship’ is what we’re particularly looking for in the meeting,” he said.

The prolonged ambiguity about the succession plan is making investors antsy, said Laurent Yoon, senior analyst at Bernstein.

“Bob Iger already came back more than two years ago,” he said. “That uncertainty is not any clearer than before.”

Parks and recession fears

Disney’s experiences division, which includes its theme parks, cruise line and merchandise, ended 2024 with more muted growth due to inflation, expansion costs for the cruise line and softer results at its international parks.

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The company will also face greater competition in Florida this summer when rival Comcast Corp. opens its Epic Universe theme park in Orlando — something analysts have frequently queried Disney executives about during earnings calls.

Disney said during its fourth-quarter earnings call in November that it expected to see 6% to 8% growth in operating income this year from its experiences division. But amid growing economic pessimism and fears of a recession, analysts and investors will be looking to see how the company addresses these potential threats to consumer spending.

“This summer is a very important season for Disney because [the parks business is] expected to recover, and if there’s a recession, then that’s a problem,” said Yoon, who maintains a “Buy” rating for the company’s stock. “There will be questions around what Disney would do in case there seems to be some macro headwinds.”

Even before concerns about an economic downturn took hold, there were growing questions about the affordability of a Disney vacation. Ticket prices at the parks have increased over the years.

Gavin Doyle, who has owned a small number of Disney shares since 2009, will be keeping an ear out for any mentions of discount offers, special promotions or even new details about expansions at the parks.

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“There’s just a lot of levers they can pull … ways to bring people back in a time when demand may be softening,” said Doyle, founder of MickeyVisit.com, a parks affordability guide.

Handicapping ESPN’s flagship streamer

Live sports is a key attraction for consumers, and Disney has frequently mentioned its plans to launch its standalone ESPN flagship streaming product this summer.

But analysts and investors would like more information about pricing, the look of the product, how its experience will be different from the ESPN channel on linear television and how it will work with other services.

With Disney’s continued transition from linear television to streaming, the company will need to make sure “that transition is smooth,” said Yoon of Bernstein.

The company has already launched an ESPN tile on the Disney+ homepage to try to reduce churn and encourage new subscribers.

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Culture wars

One proposal on the company’s proxy statement is an item from the National Center for Public Policy Research, a conservative think tank that is calling on Disney to reconsider its participation in the Human Rights Campaign’s corporate equality index.

The corporate equality index is an annual report that rates employers on their workplace inclusivity for LGBTQ+ workers.

The National Center for Public Policy Research, which often makes proposals at Disney’s shareholder meeting, said Disney’s participation in the index indicated that the company was involved in “partisan behavior” and that it should rethink that decision due to “fiduciary duty to its shareholders.”

Disney recommended its shareholders vote no on the proposal.

The proposal hints at the type of culture wars that Disney has recently started to shrink from. The company recently acknowledged that it removed a trans athlete storyline from a Pixar animated series, saying “many parents would prefer to discuss certain subjects with their children on their own terms and timeline.”

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Disney has also softened some of its internal DEI policies, as have other Hollywood studios and businesses in other industries.

Movie Reviews

No More Time – Review | Pandemic Indie Thriller | Heaven of Horror

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No More Time – Review | Pandemic Indie Thriller | Heaven of Horror

Where is the dog?

You can call me one-track-minded or say that I focus on the wrong things, but do not include an element that I am then expected to forget. Especially if that “element” is an animal – and a dog, even.

In No More Time, we meet a couple, and it takes quite some time before we suddenly see that they have a dog with them. It appears in a scene suddenly, because their sweet little dog has a purpose: A “meet-cute” with a girl who wants to pet their dog.

After that, the dog is rarely in the movie or mentioned. Sure, we see it in the background once or twice, but when something strange (or noisy) happens, it’s never around. This completely ruins the illusion for me. Part of the brilliance of having an animal with you during an apocalyptic event is that it can help you.

And yet, in No More Time, this is never truly utilized. It feels like a strange afterthought for that one scene with the girl to work, but as a dog lover, I am now invested in the dog. Not unlike in I Am Legend or Darryl’s dog in The Walking Dead. As such, this completely ruined the overall experience for me.

If it were just me, I could (sort of) live with it. But there’s a reason why an entire website is named after people demanding to know whether the dog dies, before they’ll decide if they’ll watch a movie.

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Scarlett Johansson and June Squibb bonded on ‘Eleanor the Great.’ Well, except that one scene

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Scarlett Johansson and June Squibb bonded on ‘Eleanor the Great.’ Well, except that one scene

Scarlett Johansson wasn’t on the hunt for a feature film to direct when she was sent “Eleanor the Great,” about a 90-something woman who reminded Johansson of her own sparky grandmother. But Tory Kamen’s script arrived with a cover letter from Oscar nominee June Squibb.

“I was really interested in what, at this stage, June wanted to star in,” she says. “I was compelled to read it because of that.”

What Johansson also learned is that Squibb, star of last year’s acclaimed caper “Thelma” and the voice of Nostalgia in “Inside Out 2,” adds extra gloss to a project and is genre-adaptable. Since “Eleanor,” she’s wrapped shooting on an indie mockumentary called “The Making of Jesus Diabetes,” starring and produced by Bob Odenkirk. (“Bob and I know each other from ‘Nebraska,’” she says. “He asked and I did one scene.”) Currently, she’s in the play “Marjorie Prime,” her first appearance on Broadway since “Waitress” in 2018, when she stepped into the role of Old Joe, previously occupied by Al Roker. (“They made [the character] into a lady for me.”)

Recently, Johansson and Squibb got together via Zoom to discuss lurching process trailers, how Squibb bonded with co-star Erin Kellyman (who plays Nina, Eleanor’s college-age friend), and the trick to playing a character who tells a whopper at a Holocaust survivors’ support group based on her dead best friend’s experience.

Squibb, left, Erin Kellyman and Chiwetel Ejiofor in “Eleanor the Great.”

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(Jojo Whilden / Sony Pictures Cla)

What does a first-time director plan for Day One of a wintertime shoot in New York?

Johansson: The first thing we shot was [Eleanor and Nina] arriving at Coney Island. It wasn’t easy. We were outside. It was cold. It was a little hectic, but we figured it out. Then we had to do this thing in a car, and it was just miserable. Nobody wants to shoot a scene being towed in a car. There are all these stops and starts. You get nauseous. I felt terrible about that. But it was good for June and Erin.

Squibb: We had a lot of time that day together and we liked who each other was. It was just easy.

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June, you believe in showing up fully prepped, on script. Did you and Scarlett talk a lot about Eleanor?

Squibb: I’m sure we talked over that first two weeks, but I think we started delving when we started shooting. I can’t say this enough, but her being the actress she is? It just helped me tremendously. I felt so relaxed, like she knew what I was doing.

A less charismatic actor might have trouble pulling off this character. Eleanor can be so impertinent, yet the audience still has to like her.

Johansson: The tightrope June walks is that she’s able to be salty, inconsiderate and rude as the Eleanor character, then balance it out with quiet moments where you see the guard slip. You see the vulnerability of [Eleanor]. June plays that so beautifully.

June, in 1953, you converted to Judaism. Scarlett, how important was it to have Eleanor played by a Jewish actress?

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Johansson: It was definitely important to me, and it became important to the production too. We had tremendous support from the Jewish community. We brought the script to the Shoah Foundation and they helped us craft [Eleanor’s best friend] Bessie’s survivor story.

Actress June Squibb, right, and director Scarlett Johansson.

(The Tyler Times / For The Times)

Did they also help you find real-life Holocaust survivors — like Sami Steigmann —that you cast as support group members?

Johansson: It was a real group effort. Every time someone joined, it was a huge celebration. We got another one! At the time there were, like, 225,000 [survivors] worldwide. It gets less every year. I think only two of [the survivors in the group] knew each other previously. None of them had ever been on a film set before, and they were so patient with us.

Squibb: We just sort of passed the time of day. Sami, who was sitting next to me, and I chatted. It was all very relaxed. They were having a good time. They were interested in lunch. I remember that.

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Johansson: I talked to everyone individually. Quite a lot of them are public speakers and share their stories. It’s amazing. You’re talking to people in their 90s about an experience they had when they were 7. Their stories are so vivid in their minds. Sami told June that sharing the story is part of the healing.

June, for a bat mitzvah scene you memorized a complicated Torah portion. How did it go?

Squibb: It wasn’t easy to learn. I didn’t do it overnight. But we were in a beautiful synagogue, and it was great to stand there and do it. I enjoyed it.

Talk about finding out that it didn’t make the final cut.

Squibb: I think the first thing I asked [Scarlett was], [sounding peeved] “Where did my Torah portion go?” [laughs]

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Johannson: It was, like, “What the hell happened?” [laughs, then winces] I really struggled. But every way I cut it, it didn’t work so it just had to go. I was pretty nervous to show it [to June]. I said to Harry, my editor, “She worked so hard on it.”

How about that five-minute standing ovation when “Eleanor” has its world premiere at Cannes?

Squibb: It was just terribly exciting. We hugged each other a lot. And Erin was there, and she was in our hug too. I kept thinking, “We’re not even at a lovely theater in America. My God, this is an international audience here and they’re loving it.” And they did.

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Movie Reviews

Film reviews: ‘Marty Supreme’ and ‘Is This Thing On?’

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Film reviews: ‘Marty Supreme’ and ‘Is This Thing On?’

‘Marty Supreme’

Directed by Josh Safdie (R)

★★★★

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