Disney Extends CEO Bob Iger’s Contract

Disney CEO Robert Iger arrives for the 92nd Academy Awards at the Dolby Theater on February 9, 2020 in Hollywood, California.

Robin Beck | AFP | Good pictures

The Walt Disney Company has extended CEO Bob Iger’s contract by two years, extending his tenure through 2026.

Shares of the company were effectively flat after the news.

Iger told CNBC in February that he did not intend to stay in his post for more than two years, which would have taken him through 2024. He returned to Disney in November, taking over the job from Bob Chabeck, who was named CEO in early 2020. Iger plans to prepare his next successor as his new CEO.

The succession process remains a key issue for Iger, who noted in a statement Wednesday that the company’s board of directors continues to evaluate candidates for the position. “I want to ensure that Disney is strongly positioned as my successor takes over,” Iger said of extending his contract. “The importance of the succession process cannot be overstated.”

However, Iger delayed the succession decisions. On four separate occasions between 2013 and 2017, he extended his tenure as CEO after saying he planned to retire.

Iger’s second tenure at Disney coincided with a surge in the traditional media space. Big players like Disney have had to contend with a rapidly changing landscape as advertising dollars dry up and they ditch their cable subscriptions in favor of streaming.

However, the streaming space has been tough to navigate in recent quarters as costs have increased and consumers have become more aware of their media spending. Streaming subscriber slowdown in 2022: Netflix, Disney, Warner Bros. It cut valuations of Discovery and Paramount Global in half — before many stocks rebounded along with the broader market in the first half of the year.

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Since his return, Iger has undertaken a sweeping restructuring of the company, including 7,000 layoffs.

“We’ve made important and sometimes difficult decisions to address some existing structural and performance issues, and I’m proud of what we’ve accomplished together,” Iger wrote in a memo to employees obtained by CNBC on Wednesday. . “But there is still work to be done before this transformative work is done, and I am committed to seeing it through.”

Disney was there Pull programming from its streaming services to save money. With its latest Pixar film, “Elemental,” the company is trying to take its animation business off the rails in a big way. Low opening weekend collections to the studio since the original “Toy Story” premiered in 1995.

Disney also recently completed Lay off 7,000 workers and saw the departure of senior chief financial officer Christine McCarthy.

“Bob has put Disney back on the right strategic path for current value creation and has allowed sufficient time to position the new CEO for long-term success while ensuring the successful completion of this transition. It is shareholders’ desire to extend his term, and remain CEO through the end of 2026.” “He agreed to our request,” said Disney chairman Mark Parker.

CNBC’s David Faber will interview Iger on CNBC’s “Squawk Box” Thursday at 8 a.m. ET.

— CNBC’s Alex Sherman contributed to this report

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