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By Bloomberg

Walt Disney Co. named Tom Staggs as chief operating officer, putting him in line to possibly succeed Chief Executive Officer Bob Iger in 2018.

Staggs, 54, will continue to lead the company’s theme parks while he serves in the new role, Burbank, California-based Disney said today in a statement. The heads of Disney’s operating divisions will report jointly to Iger and Staggs, the company said.

The promotion of the 25-year Disney veteran resolves a long-standing industry debate over who will likely succeed Iger, whose retirement date has been extended twice. Chief Financial Officer Jay Rasulo, considered another contender, will continue to report to Iger. His contract expired Jan. 31.

“Wall Street loves Tom Staggs,” said Laura Martin, an analyst at Needham & Co. who has a hold rating on the stock. “He has a return on capital focus, which Wall Street admires. He’s got good relationships with investors from his time as CFO. He’s a lifer at Disney and understands the culture.”

The position doesn’t mean Staggs will become CEO. The appointment gives him three years to immerse himself in all parts of the business and for the board to get to know him better. Iger served for five years as president and chief operating officer under former CEO Michael Eisner with no guarantee he would take over.

Disney Veteran

Staggs joined Disney in 1990 as a manager of strategic planning and became chief financial officer in 1998. Before Disney, he worked in investment banking at Morgan Stanley. He and Rasulo switched jobs five years ago, a move designed to give Staggs experience in operations.

As head of the theme parks, Disney’s second-largest division after television, he oversaw the introduction of two new cruise ships, a Hawaiian resort, a redevelopment of the company’s California Adventure park in Anaheim and the construction of a new resort in Shanghai set to open in 2016.

Staggs’s new contract runs until June 30, 2018, Disney said in a filing Thursday. He’ll receive an annual salary of $2 million and be eligible for bonuses and stock awards. The value of his stock awards this fiscal year will be $8 million.

Rasulo, 59, may leave Disney for a CEO position at another company, Needham’s Martin said.

He could also stay in his present position or at some point return to leading the theme parks, where he was considered a strong manager, according to David Miller, an analyst at Topeka Capital Markets Inc. in New York, who recommends buying the stock.

“He’ll definitely be in demand,” Miller said.

Disney climbed 1.3 percent to $102.64 at the close in New York, a new high. The shares rose 23 percent in 2014.