Disney Theme Parks Boss Thomas Staggs Promoted To COO

(RTTNews) - Walt Disney Co. (DIS) Thursday appointed Thomas Staggs as Chief Operating Officer, making him second-in-command at the entertainment company and a strong candidate to succeed CEO Robert Iger in 2018.

Thomas Staggs, chairman of theme parks and resorts, will takeover as COO immediately and also continue to oversee parks and resorts business until a successor is named, the company said in a statement. Disney's senior management team, including all business segment leaders, will report jointly to Iger and Staggs.

"Tom is an incredibly experienced, talented and versatile executive who has led Parks and Resorts during a time of unprecedented growth and expansion, including the construction of Shanghai Disney Resort. His proven ability to lead a business as well as his successful tenure as Disney's former CFO make him an ideal Chief Operating Officer, expanding his portfolio into all the company's businesses," Iger said.

Since 2010, Staggs has led Parks and Resorts', with the segment "generating revenues, profit and attendance levels." Staggs joined Disney in 1990 as Manager of Strategic Planning Group and quickly climbed the ladder to be appointed as CFO in 1998. Revenue from parks and resorts rose 9 percent to $3.9 billion in the first quarter, helped by higher attendance and increased customer spending.

Robert Iger will step down as CEO in three years when his contract expires in June 2018. Staggs appointment as the COO makes him a leading candidate to take-over the reins of the media and entertainment conglomerate. Staggs now has three years to prove his mettle and persuade Disney's board that he is the apt person for the job.

Meanwhile, CFO James Rasulo's future, also considered to be a strong contender for the top post, is unclear right now as his contract expired at the end of January. Rasulo has not extended his contract with the company or issued any statement on his future.

Since Iger took over the company in 2005, its shareholder return has quadrupled and market capitalization more than tripled. Iger oversaw the $7.4 billion acquisition of Pixar Animation Studios in 2006 and also led acquisition of Marvel Entertainment in 2009 and Lucasfilm in 2012.

DIS closed Thursday's trading at $102.63, up $1.35 or 1.33%, on the NYSE. The stock further gained $0.01 or 0.01%, in the after-hours trade.