You have outperformed your competitor in the contest for CEO. Now, what is the best way to guide them forward?

Disney Names Josh D’Amaro as Next CEO

This week, Disney revealed that Josh D’Amaro, who currently oversees the company’s parks division, will step into the CEO role in March, succeeding Bob Iger. While D’Amaro prepares to lead the entertainment powerhouse, he faces a unique challenge: managing Dana Walden, Disney’s head of TV and entertainment, who was also a top contender for the CEO position.

Leadership Transitions: A Common Dilemma

It’s not unusual for executives passed over for the top job to leave their companies. Many Fortune 500 firms have seen would-be CEOs depart after being overlooked. For example, after Jeff Immelt was chosen as GE’s CEO in 2001, the other internal candidates eventually left for leadership roles elsewhere. Similarly, Ron Johnson, once Apple’s retail chief, exited to lead J.C. Penney after Tim Cook became Apple’s CEO. More recently, Walmart announced that Kathryn McLay, previously seen as a potential CEO, would be leaving after John Furner was named the company’s next chief executive.

Walden’s New Role at Disney

Unlike many in her position, Walden appears set to remain at Disney, at least for now. Alongside D’Amaro’s promotion, Disney elevated Walden to president and chief creative officer—a first in the company’s century-long history. In this capacity, she will oversee all film and streaming content, reporting directly to D’Amaro, the very colleague who secured the CEO role over her.

Navigating a Delicate Dynamic

This arrangement can be challenging for both parties. The executive who missed out on the CEO position must adjust to working under the new chief, while the incoming CEO must lead a team that includes a former rival for the top job.

Distinct Roles, Shared Strengths

Disney has structured the leadership so that D’Amaro and Walden have clear, complementary responsibilities. According to Susan Sandlund, managing director at Pearl Meyer, Walden’s expertise lies in creative leadership, while D’Amaro’s strengths are in finance and park operations. “Together, they form a formidable team,” Sandlund notes.

Sandlund also points out that this setup is similar to a co-CEO model, but with a clearer hierarchy. “Having one executive report to the other avoids the confusion and conflict that can arise with equal co-CEOs,” she explains.

Potential Challenges Ahead

Even with well-defined roles, success isn’t guaranteed. Emma Zhao, assistant professor at UVA’s McIntire School of Commerce, emphasizes that D’Amaro must establish a unified vision for the leadership team and ensure Walden is entrusted with significant responsibilities. “This approach helps align everyone’s interests and minimizes personal agendas,” Zhao says.

Walden’s own ambitions could also influence how long she stays at Disney. If she aspires to become a CEO elsewhere, her new title and a one-time award valued at $5.26 million might only delay her departure.

Expert Advice for Walden

Sandlund, who has advised executives in similar situations, recommends patience. “My suggestion is to avoid making hasty decisions. While other companies may offer CEO roles, if you value the culture and your place at Disney, it’s worth seeing what opportunities the company can provide to make you want to stay,” she advises.

This article was first published on Fortune.com.