Disney Extends CEO Bob Iger’s Contract through 2026
The Decision
The Walt Disney Company has announced that CEO Bob Iger’s contract will be extended by two years, keeping him in his position until 2026.
Market Reaction
Following the news, the company’s shares remained relatively stable.
Previous Plans
In February, Iger stated that he had no intention of staying longer than two years, which would have ended his tenure in 2024. However, in November, Iger returned to Disney and now plans to prepare a successor during his extended contract.
Succession Process
The company’s board of directors continues to evaluate candidates for the CEO position. Iger emphasized the importance of a smooth succession process, stating that he wants to ensure Disney’s strong position when his successor takes over.
Past Extensions
This is not the first time Iger has delayed his retirement plans. Between 2013 and 2017, he extended his tenure as CEO despite initial intentions to retire.
Challenges in the Media Industry
During Iger’s second term as CEO, the media industry has been facing significant changes. Players like Disney have had to adapt to shifting ad revenues and consumer preferences, as more people opt for streaming services and cut their cable subscriptions.
Streaming Sector Challenges
While streaming has seen growth, it has come with its own challenges. Rising expenses and consumer scrutiny over media spending have affected the valuations of major streaming companies like Netflix, Disney, Warner Bros. Discovery, and Paramount Global.
Restructuring Efforts
Since his return, Iger has implemented a comprehensive restructuring plan at Disney, which included laying off 7,000 employees.
Future Plans
Iger expressed his commitment to accomplishing more and completing the transformative work at Disney. The company is pulling programming from its streaming services to save costs and is working to revitalize its animation business.
Board Chairman’s Statement
Mark Parker, Disney’s chairman, commended Iger for setting the company on the right strategic path. The board believes extending his tenure until the end of 2026 is in the best interest of the shareholders.
Further Details
AsumeTech’s David Faber will interview Iger on AsumeTech’s “Squawk Box” on Thursday at 8 a.m. ET.
