OAN’s Noah Herring
4:47 PM – Wednesday, July 12, 2023
The Walt Disney Company have recently announced that the major corporation will extend CEO Bob Iger’s contract by two years, until the end of 2026.
The board decided to extend Iger’s contract because it ensures “continuity of leadership during the company’s ongoing transformation,” Disney representatives said in a statement.
Iger returned to the CEO role in November 2022, in what some called a surprise decision that brought him back less than a year after stepping down. Bob Chapek succeeded Iger as CEO in February 2020, although Iger remained chairman. However, Chapek’s dubious judgments about the company’s direction, as well as his unpopularity, prompted Disney’s board to re-recruit Iger.
“Time and again, Bob [Iger] has shown an unparalleled ability to successfully transform Disney to drive future growth and financial returns, earning him a reputation as one of the world’s best CEOs,” said Disney chairman Mark G. Parker.
“Bob has once again set Disney on the right strategic path for ongoing value creation, and to ensure the successful completion of this transformation while also allowing ample time to position a new CEO for long-term success, the Board determined it is in the best interest of shareholders to extend his tenure, and he has agreed to our request to remain Chief Executive Officer through the end of 2026,” he added.
The decision comes as Iger has reportedly emphasized the importance of the succession process.
“I want to ensure Disney is strongly positioned when my successor takes the helm,” Iger said of extending his contract. “The importance of the succession process cannot be overstated.”
Iger has delayed succession decisions before, which had caused him to extend his tenure as CEO despite his intentions to retire.
Disney is currently facing a range of internal issues as well as the reinvention of its TV business for the streaming era. In the past two years, the streaming market has slowed cutting many of the top streaming services valuations roughly in half in 2022.
Box office analyst Valliant Renegade reported that Disney lost around $900 million on its previous eight studio titles. Disney also announced 7,000 job cuts last month after conducting a “strategic restructuring.”
The two-year timeline that was set after his return in November sparked discussion about who would succeed Iger, and whether or not they would be from inside the company. The decision to extend his contract will take some pressure off the company while Iger sets up a succession process.
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