Disney’s CEO search may go outside the Mouse House

The Walt Disney Co. is redoubling efforts to find its next chief executive after the surprise announcement Monday that Thomas Staggs would step down from his No. 2 post next month.

News of Staggs’ impending departure stunned Hollywood and Wall Street, largely because Disney had adhered to a yearslong succession plan that laid the groundwork for Staggs to assume the top job when chief executive and chairman Robert Iger’s contract expires in June 2018.

Now Disney, which has long promoted from within for its top jobs, is increasingly likely to turn to an outside candidate for the CEO position.

While there is plenty of major talent among Disney’s executive ranks, there are few internal candidates who have the management experience necessary for the top job at the world’s largest entertainment company, analysts said.

“There certainly hasn’t been anyone who has risen to that level at this point,” said Robin Diedrich, an analyst for Edward Jones Research. “Nothing really comes to mind.”

Disney, based outside Los Angeles, declined to comment.

Disney is a more complex company than its entertainment rivals. The company, which has 185,000 employees, owns and operates a sprawling portfolio of theme parks, has a movie studio that consistently is a top performer and controls a television empire that boasts crown jewels ABC and ESPN.

Many of Disney’s division heads are relatively new to their posts and don’t have the sort of long-term tenures in top jobs or breadth of management experience that the company typically seeks. Staggs, for example, has been with Disney for 26 years.

Alan Horn, 73, the respected chief of Disney’s film studio, has had a long career in the movie business, serving in high-profile posts at Warner Bros. and 20th Century Fox. However, Horn doesn’t have experience overseeing other divisions at Disney, which he joined in 2012.

The company’s TV business is run by Ben Sherwood, who oversees ABC and the entertainment cable channels, and John Skipper, who heads ESPN. He has been in his job for a little over a year.

Skipper is well regarded and has creative chops, but ESPN’s growth prospects have become increasingly scrutinized by investors in recent months.

Bob Chapek, the chairman of the company’s parks and resorts division, is a 23-year veteran of Disney. But he only became head of the unit last year.

James Pitaro became the sole chairman of Disney’s consumer products and interactive media unit in February after co-chair Leslie Ferraro departed the company. He is a relative newcomer to Disney, having joined in 2010.

There is one executive at Disney who could take on the top job — the one who already has it.

In a research report issued Monday afternoon, analyst Anthony DiClemente of Nomura Securities suggested that Iger, 65, could extend his contract with the company.

This story was originally published April 5, 2016 at 3:30 PM with the headline "Disney’s CEO search may go outside the Mouse House."