Iger Extended At Disney
The Walt Disney Company Board of Directors yesterday announced it has extended Bob Iger‘s contract as Chairman and Chief Executive Officer until July 2, 2019. Iger was originally slated to step down in 2018, but this new deal keeps him around for an additional year. In making the announcement of Iger’s extension, Orin C. Smith, Independent Lead Director of the Disney Board said, “Given Bob Iger’s outstanding leadership, his record of success in a changing media landscape, and his clear strategic vision for Disney’s future, it is obvious that the Company and its shareholders will be best served by his continued leadership as the Board conducts the robust process of identifying a successor and ensuring a smooth transition.”
Smith continued, “Mr. Iger has led The Walt Disney Company to unprecedented success during his 11 years as CEO, driving Disney to new creative heights, expanding the Company’s global reach, fostering technological innovation, and delivering year-after-year of record financial results. During his tenure, Mr. Iger has created enormous value for shareholders, with total shareholder return of 448%, compared to 144% for the S&P 500, and a dramatic increase in the Company’s market capitalization to $177 billion from $46 billion.”
Iger remarked, “Leading this great company is a tremendous privilege, and I am honored to have been asked to continue serving as CEO through July 2, 2019. Even with the incredible success the Company has achieved, I am confident that Disney’s best days are still ahead, and I look forward to continuing to build on our proven strategy for growth while working with the Board to identify a successor as CEO and ensure a successful transition.”
According to the Form 8-K filed with the SEC, Iger’s undisclosed salary will remain the same as 2016, but he will receive a $5 million cash bonus if he stays through July 2, 2019. He will also be the beneficiary of a sweet consulting agreement that will pay him a quarterly fee of $500,000 for each of the first 8 quarters during the Consulting Period and $250,000 for each of the last four quarters of the Consulting Period.
