The board of directors at Walt Disney has made the decision to extend the contract of CEO Robert Iger by two years, demonstrating their confidence in his leadership as the company faces long-term challenges in its film and television businesses. The board released a statement indicating that the extension aims to ensure continuity of leadership during Disney’s ongoing transformation.
Robert Iger had retired in 2021 but returned as CEO in November 2022, committing to a two-year term to revitalize the business and find a more permanent replacement after the departure of Bob Chapek, whom Iger had chosen as his successor.
Iger’s extended tenure comes at a crucial time for the entertainment and media industry, which is undergoing significant transitions. The once-promising streaming video business continues to generate losses, while weak box office performances of high-profile titles have posed challenges to Iger’s efforts to rejuvenate the company.
In addition, the television business is grappling with long-term declines in audience numbers, a trend that appears to be irreversible. In February, Disney announced plans to cut 7,000 jobs as part of a major overhaul aimed at saving $5.5 billion.
Under the terms of his contract extension, Iger has the potential to receive an annual incentive bonus of up to five times his base salary. In his previous contract, he was estimated to earn $27 million per year in total compensation.
Following the announcement, Disney’s shares experienced a slight increase in after-hours trading. In a statement, Iger acknowledged that there is more work to be done before the transformative efforts are complete. He also mentioned that the board is actively conducting interviews with both internal and external candidates for the CEO position.
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