BREAKING: Disney CEO Bob Iger Extends Contract to July 2, 2019

Earlier this year, we told you that there was increasing speculation that Bob Iger might extend his tenure as Disney’s CEO if a successor was not appointed prior to the end of his contract.

Today, that speculation was confirmed by CNBC who just reported that Bob Iger has extended his contract by one year until July 2, 2019.

“Given Bob Iger’s outstanding leadership, his record of success in a changing media landscape, and his clear strategic vision for Disney’s future, it is obvious that the Company and its shareholders will be best served by his continued leadership as the Board conducts the robust process of identifying a successor and ensuring a smooth transition,” said Orin C. Smith, who is the lead independent director of Disney’s board.

“Mr. Iger has led The Walt Disney Company to unprecedented success during his 11 years as CEO, driving Disney to new creative heights, expanding the Company’s global reach, fostering technological innovation, and delivering year-after-year of record financial results,” Smith said. “During his tenure, Mr. Iger has created enormous value for shareholders, with total shareholder return of 448%, compared to 144% for the S&P 500, and a dramatic increase in the Company’s market capitalization to $177 billion from $46 billion.”

Variety reports that there is a pact that “calls for Iger to serve as a consultant to Disney for three years following his exit as CEO.”

“In addition to his regular salary, Iger is scheduled to receive a $5 million bonus in 2019 for sticking around another year, according to a Securities and Exchange Commission filing Thursday. When he shifts to consultant mode, he’ll earn $500,000 a quarter for the first two years, and $250,000 per quarter for his third year, per the filing.”

Source: CNBC and Variety