Disney CEO Bob Iger’s contract has been extended by two years, keeping him in his position until 2026. The announcement comes after Iger previously stated that he had no intention of staying longer than two years, which would have taken him through 2024. Iger returned to Disney in November, taking back the CEO role from Bob Chapek. During his new tenure, Iger plans to prepare his successor for the position. The board of directors is currently evaluating candidates for the post, and Iger emphasized the importance of a smooth succession process. This is not the first time Iger has delayed his retirement plans, as he extended his tenure on four different occasions between 2013 and 2017.
Iger’s second tenure at Disney has coincided with significant changes in the media industry, including the rise of streaming and the decline of traditional cable subscriptions. The streaming space has presented challenges, with rising expenses and consumers becoming more conscious of their media spending. This has affected the valuations of major players like Netflix, Disney, Warner Bros. Discovery, and Paramount Global. Since his return, Iger has implemented a broad restructuring of the company, which included 7,000 layoffs.
Disney has also faced challenges in its animation business, with its latest Pixar movie, “Elemental,” recording the lowest opening weekend gross for the studio since the original “Toy Story” premiered in 1995. The company has been pulling programming from its streaming services to save money. Additionally, Disney recently completed a round of layoffs, letting go of 7,000 employees, and saw the departure of its veteran Chief Financial Officer Christine McCarthy.
Mark Parker, Disney’s chairman, stated that Iger has set the company on the right strategic path for ongoing value creation. The extension of Iger’s contract will allow for the successful completion of the ongoing transformation and provide ample time to position a new CEO for long-term success. CNBC’s David Faber will interview Iger on “Squawk Box” on Thursday morning.
What factors contributed to the decision to extend Bob Iger’s contract as Disney CEO until 2026?
Disney CEO Bob Iger’s contract has been extended, keeping him in his position until 2026. This news comes as a surprise, as Iger had previously expressed his intention to step down in 2024. However, Iger has returned to Disney as CEO, taking over from Bob Chapek in November. During his second tenure, Iger plans to groom his successor for a smooth transition.
The board of directors is currently evaluating candidates for the CEO position, emphasizing the importance of finding the right person to lead the company. Iger has delayed his retirement plans before, extending his tenure several times between 2013 and 2017.
Iger’s return to Disney has coincided with significant shifts in the media industry, particularly the rise of streaming and the decline of traditional cable subscriptions. These changes have posed challenges for major players like Netflix, Disney, Warner Bros. Discovery, and Paramount Global, as rising expenses and consumer spending habits come into play. In response, Iger has implemented a broad company restructuring, which unfortunately led to 7,000 layoffs.
Disney has also faced challenges in its animation business, with its latest Pixar movie, “Elemental,” underperforming at the box office. To reduce costs, the company has pulled programming from its streaming services. Additionally, Disney recently experienced a round of layoffs and the departure of its veteran Chief Financial Officer.
Despite these obstacles, Disney Chairman Mark Parker believes that Iger has set the company on the right strategic path for future success. The extension of Iger’s contract will give him ample time to complete the ongoing transformation and position a new CEO for long-term success.
To learn more about this development, tune in to CNBC’s interview with Iger on “Squawk Box” Thursday morning.
This decision by The Walt Disney Company to extend Bob Iger’s contract reaffirms their confidence in his leadership and vision. The strategic move also provides stability and continuity, as succession plans progress smoothly for the future.