Disney’s CEO Robert A. Iger has agreed to stay, after a series of delayed retirement plans. The 66-year-old’s contract has been extended, so that he remains chief executive and chairman until July 2, 2019. This extension is the third time for him at Disney, due to a lack of qualified individuals within the company to take his place. The Board Of Directors is now tasked with the difficult hunt to identify a successor; the person seen as the potential successor to Mr. Iger has abruptly left the company.
Disney wants to keep Iger close
According to the New York Times, the extension of the contract will keep the CEO’s compensation scheme similar to the previous year's, but he will be entitled to a bonus of $5 million for completing the extended term.
Under this new agreement, Disney can keep him close even after he stepped down. The former CEO would then serve as a consultant to the company for three more years. For the first two years consulting, he will be paid $2 million and $1 million for the third.
Iger started his career in entertainment at ABC 43 years ago. Under his leadership, the Walt Disney Company became one of the “Most Reputable Companies” in America and the world, recognized by Forbes Magazine from 2006 to 2017. Disney received many other respectable recognition, including “Company of the Year” by Yahoo Finance in 2013. Last year, an internal candidate for the successor, Thomas O. Staggs, had to leave the company early after losing the support from the board members.
When Staggs left, Iger said that Staggs was a friend of his and many others in the company but was not commenting beyond that he was sorry for what had come to pass.
Disney’s new CEO
The hunt for a new CEO is still undergoing, and the people at Disney are forced to look for outside candidates to fill the position. Iger, who is also a board member at Apple, said that he was confident Disney’s best days were still ahead, “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.” During his 11 years as CEO of Disney, the total shareholder return increased to 448%, and the company’s market capitalization increased dramatically from $46 billion to $117 billion.
