Originally back as Mouse House CEO for just two years, Iger’s contract has now been extended another two years through the end of 2026, the company announced today.“Time and 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,” said Disney Board chair Mark G. Parker today of the decision to keep the past-and-present CEO on longer. “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.”Having departed Disney at the end of 2021 after serving as CEO from 2005 to 2020 and presiding over a steady rise in the company’s stock price, Iger was back in the driver’s seat in November 2022 to replace his handpicked successor, Bob Chapek. With the company in disarray and the stock slumping, Iger swore he would only serve two years to get things back in shape after the pandemic and Chapek’s reign of error.Notorious for sidelining a series of successors over the decades and un-retiring multiple times, Iger seemed to many observers unlikely to anoint a new chief in 2024 and step aside as prescribed by his agreement. When he was pressed on the topic in recent months, the exec said he had actively taken part in a succession committee’s efforts to land on the right leader for Disney’s longer-term future. At a Wall Street conference last March, he said succession was “at the top of the list” of his priorities.Although there was briefly a sense of euphoria in Burbank and on Wall Street as Iger returned, the CEO sequel hasn’t unspooled smoothly. The exec has confronted a slowdown in the theme parks unit, a run of theatrical movie disappointments, accelerating pay-TV declines and a soft advertising market. Another worry is negotiating a fair deal with Comcast for its 33% stake in Hulu, which will cost Disney at least $9 billion to retain.As the headaches have mounted, the company’s once-high-flying stock has drifted down to about half of its level in early 2021. While most media shares have been hurt by the larger economy and industry flux of late, Disney’s slide has been more conspicuous given that it is a Dow component and an outsized symbol of entertainment and leisure.“Since my return to Disney just seven months ago, I’ve examined virtually every facet of our businesses to fully understand the tremendous opportunities before us, as well as the challenges we’ve been facing from the broader economic environment and the tectonic shifts in our industry,” Iger exclaimed Wednesday as Hollywood stands on the brink of severe labor discord if SAG-AFTRA joins the WGA in going on strike.“On my first day back, we began making important and sometimes difficult decisions to address some existing structural and efficiency issues, and despite the challenges, I believe Disney’s long-term future is incredibly bright,” he add in reference to the vast reorganization and layoffs of 7,000 employees in recent months as the company pursued $5.5 billion in cost savings. “But 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.”The latest twist in the career of the 72-year-old executive’s seemingly endless pursuit of a worthy successor comes less than a month after longtime CFO Christine McCarthy stepped back from her duties, citing a family medical situation, though reports swirled of conflict in the executive suite. Court intrigue aside, there seems to be no apparent heir to Iger — at least not yet.
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