Disney scraps successor plans, extends CEO Bob Iger’s deal – and adds bonus of 500 per cent his salary
Disney boss Bob Iger has extended his contract by two years with his annual bonus potentially reaching five times its previous size.
Originally set to expire next year, Iger’s contract will now run through the end of 2026. The boosted bonus means Iger could receive up to 500 per cent of his annual base salary of $1m (£765,000).
The decision to extend his contract comes following the abandonment of plans to find a successor for Iger, who returned to the company unexpectedly in November 2020 after a brief and tumultuous handover to Bob Chapek.
While Iger had initially pledged to focus on finding a successor, industry insiders and former employees predicted another contract extension due to internal issues, the departure of the CFO, and ongoing challenges like the Writers Guild of America strike.
Iger said: “There is more to accomplish before this transformative work is complete, and because I want to ensure Disney is strongly positioned when my successor takes the helm, I have agreed to the Board’s request to remain CEO for an additional two years.”
“The importance of the succession process cannot be overstated, and as the Board continues to evaluate a highly qualified slate of internal and external candidates, I remain intensely focused on a successful transition,” he added.
Iger previously led Disney from 2005 to 2020 during which he extended his contract four times before transitioning to executive chairman.
Mark G. Parker, Disney’s board chair, said: “Time and time again, Bob 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.”
In February, Iger announced Disney would start axing jobs as part of a $5.5bn (£4.54bn) cost-cutting drive. Most recently in April, Disney slashed 4,000 roles.