The Board of Directors at Disney (NYSE:DIS) has announced the extension of Bob Iger’s tenure as CEO for an additional two years. The agreement means that Iger will continue to lead Disney until December 31, 2026. This decision was disclosed in a filing with the Securities and Exchange Commission (SEC), which also revealed that Iger’s new contract includes an annual bonus target equal to 500% of his yearly salary. Since Iger’s return, Disney’s stock has experienced a slight decline of approximately 2%.
Mark Parker, Disney’s chairman, expressed his confidence in Iger’s ability to drive growth and financial success in a news release, stating, “Time and again, Bob has shown an unparalleled ability to successfully transform Disney to drive future growth and financial returns, earning him a reputation as one of the world’s best CEOs.” Parker further emphasized that Iger has set Disney on the right strategic course for continued value creation and the completion of its transformation. The extension of Iger’s tenure allows ample time to position a new CEO for long-term success while prioritizing shareholders’ best interests.
During his return as CEO in November, Iger prioritized profitability as investors shift their focus from subscriber growth to margins. He has worked on establishing new revenue streams, such as the recently launched ad-supported tier for Disney’s streaming service, Disney+. Additionally, Disney has announced price increases for the service to mitigate losses and improve metrics like average revenue per user (ARPU). Iger has also reaffirmed the company’s objective of achieving streaming profitability by 2024.
As part of its cost-saving measures, Disney aims to reduce $5.5 billion in expenses, including $3 billion in content costs. This has led to significant job cuts, with 7,000 positions eliminated as of the announcement made in February. The layoffs occurred in multiple rounds, with the latest one taking place recently.
In his statement, Iger acknowledged that there is still important work to be done before the ongoing transformation is complete. He emphasized the significance of a successful succession process and stated, “Because I want to ensure Disney is strongly positioned when my successor takes the helm, I have agreed to the Board’s request to remain CEO for an additional two years.” While the Board evaluates qualified internal and external candidates, Iger remains committed to a smooth transition of leadership.
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Author Faith Yakubu 
