Disney Extends CEO Robert Iger’s Contract

Walt Disney Co. on Wednesday said Chief Executive Robert Iger has agreed to stay on in his position through 2026, extending his second term as the company contends with challenges from its pivot to streaming, a box office slump and ongoing cost cuts.

The Wall Street Journal reports the entertainment giant’s board unanimously voted to extend Iger’s contract by two years. Its independent members said the extension provides continuity as the company’s transformation continues and provides more time to prepare a transition plan for CEO succession.

Iger, 72, returned to Disney in November after former CEO Bob Chapek, whom Iger selected as his successor, was ousted from the position last fall. At the time, Disney’s board said that Iger would stay for two years, setting its strategic direction while helping to pick a successor to lead the company longer term.

“There is more to accomplish before this transformative work is complete, and I am committed to seeing this through,” Iger said in a memo to Disney staffers Wednesday. 

Iger’s decision to stay will further delay determining a successor to him. Senior Disney executives who are considered to be on the shortlist include Disney Entertainment executives Dana Walden and Alan Bergman and theme park and consumer products chief Josh D’Amaro, people inside the company have said.

As part of his contract extension, Iger can earn an annual performance bonus totaling 500% of his annual base salary, according to a securities filing.

Disney is in the midst of an extensive cost-cutting exercise, which resulted in the elimination of 7000 positions.