walt disney company Extends the contract with CEO Bob Iger for two years, extending his term until 2026.
After the news, the company’s stock price was virtually flat.
Iger told CNBC in February that he did not intend to stay in the position beyond two years, which would end in 2024. Iger returned to Disney in November, succeeding Bob Chapek, who was appointed CEO in early 2020. Iger had plans to prepare his next successor during his new term as CEO.
The succession process remains a key issue for Iger, who said in a statement Wednesday that the company’s board continues to evaluate candidates for posts. “I want to make sure Disney is in a strong position when my replacement takes over,” Iger said of the contract extension. “The importance of the inheritance process cannot be overemphasized.”
But Mr. Iger has delayed making a succession decision before. He extended his term as CEO after saying he intended to retire four times between 2013 and 2017.
Iger’s second tenure at Disney coincided with upheaval in the legacy media space. Big companies such as Disney have had to contend with rapidly changing conditions as advertising dollars dry up and consumers increasingly choose to stream and drop cable deals.
Watch: CNBC’s David Faber will interview Disney CEO Bob Iger on CNBC’s “Squawk Box” Thursday at 8 a.m. ET.
But it has struggled in recent quarters to navigate the streaming space as spending balloons and consumers become more conscious of their media spending. A slowdown in streaming subscribers saw valuations of Netflix, Disney, Warner Bros. Discovery and Paramount Global nearly halved in 2022, but some stocks rallied along with the broader market earlier this year. .
Since his return, Iger has embarked on a major restructuring of the company, including laying off 7,000 people.
In a memo to employees obtained by CNBC on Wednesday, Iger said, “We have made important and sometimes difficult decisions to address existing structural and efficiency issues. I am proud of what we have achieved together.” . “But there is still more to be accomplished before this transformative effort is completed, and I am determined to see it through.”
Disney has ever pull programming Save money from streaming services. The company is also trying to get its animation business out of a big rut as the latest Pixar movie, Elemental, hits big. Worst weekend opening gross for the studio since the original “Toy Story” premiered in 1995.
When Disney ended recently lay off 7,000 employeessaw the resignation of veteran chief financial officer Christine McCarthy.
“Bob has once again put Disney on the right strategic trajectory for continued value creation, and has ensured this transformation while giving us ample time to appoint a new CEO for long-term success. The board has determined that Disney is in the best position to successfully complete 2020.” Shareholders’ interest is in his term extension, and we expect him to remain CEO until the end of 2026. We have agreed to the request,” said Disney Chairman Mark Parker.
CNBC’s David Faber will interview Iger on CNBC’s “Squawk Box” Thursday at 8:00 a.m. ET.
Read the full memo from Mr. Iger to Disney employees.
Dear Employees,
We would like to thank you for your tremendous dedication, perseverance and optimism as we have taken important steps to restructure our company for lasting creative and financial success. Since returning to Disney just seven months ago, I have explored nearly every aspect of our business in order to fully understand the enormous opportunities in front of us and the challenges we face on many fronts. I’ve been
We have made important and sometimes difficult decisions to address existing structural and efficiency issues, and we are proud of what we have achieved together. But there is still more to be accomplished before this transformative effort is completed, and I am determined to see it through to the end.
To that end, I am pleased to announce that I have agreed to a request from the Disney Board of Directors to remain CEO for an additional two years (until the end of 2026).
As I have said many times since initiating this significant transformation of the company, our progress has not been linear as we continue to navigate the challenging economic environment and the tectonic shifts occurring in our industry. . This is a moment that requires us to keep our eyes firmly, strategically and clearly on the road ahead.
It’s also important to me that Disney is in a strong position as my successor takes the helm. As the Board continues to evaluate the best candidates, both internal and external, my focus remains on a successful CEO transition.
Through it all, I remain unwaveringly optimistic about Disney’s future. I believe in this company. I believe in the leadership team that surrounds me. And I believe in you guys, great employees and cast members. We are honored to be working with you as we chart Disney’s future journey together, and look forward to what we continue to achieve.
Thank you for your efforts.
bob
— CNBC’s Alex Sherman, Kerry Caufield, and David Faber contributed to this report.