Pepper joined the Disney board in March 2004 and will take the reins from Mitchell at the beginning of 2007.
The appointment will mean that Pepper will take chairmanship of one of the largest entertainment companies in the world, which includes media properties such as Buena Vista Television and the ESPN sports television network as well as Walt Disney Film Studios. The media giant also owns the ABC television network and Radio Disney in the US.
Robert Iger, president and chief executive at Disney, said: "Since joining the Disney board, John has quickly immersed himself in our business and shared his broad and deep expertise in corporate management, global brand building and leadership development.
"In John's leadership of the board, Disney's shareholders will benefit from his notable record of success in leading and growing one of the world's largest consumer products companies. He is a man of great integrity and we all look forward to working with him in his new role."
Pepper added: "The board recognises the trust investors have placed in us with respect to corporate governance and long-term shareholder value creation. I look forward to continuing my close collaboration with the directors and senior management as the company takes full advantage of the significant and exciting opportunities before us to grow and build our brands and businesses worldwide."
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