Shares of The Walt Disney Co. ( DIS ) declined Monday as the entertainment giant said that the replacement for Chief Executive Officer (CEO) Bob Iger will be named in early 2026.

The news came in a company release announcing that Morgan Stanley ( MS ) executive chair and former CEO James Gorman will become Disney chair on Jan. 2, replacing Mark Parker.

Gorman, who heads Disney’s Succession Planning Committee, explained that appointing a new CEO is a “critical priority before us.” He added the early 2026 timing reflects the progress the committee and the board are making, and “will allow ample time for a successful transition before the conclusion of Bob Iger’s contract in December 2026.”

Iger said that the board has “benefited tremendously from James Gorman’s expertise and guidance, and we are lucky to have him as our next chairman—particularly as the board continues to move forward with the succession process.”

Iger Returned as CEO in 2022, Contract Extended Last Year

Iger returned to Disney as CEO in November 2022 when the board ousted his successor, Bob Chapek, after the company’s profit and stock price suffered during his tenure. The initial plan was for Iger to stay two years, but in 2023 his contract was extended for another two years.

Disney shares, which slipped 1% to $96.18 Monday afternoon, reached a two-year high in March but have faded since. Still, they remain up more than 6% year-to-date.