Disney’s Iger extends CEO contract
The announcement comes as board seeks his replacement
LOS ANGELES — Walt Disney Co. Chairman and Chief Executive Robert Iger has extended his contract by one year as the company’s board of directors continues to search for his replacement.
Disney announced the extension Thursday morning.
Disney has been transformed by three multibillion-dollar acquisitions orchestrated by Iger: Pixar Animation Studios in 2006, Marvel Entertainment in 2009 and Lucasfilm in 2012. Those deals have provided Disney with lucrative franchises, such as “Star Wars” and “The Avengers,” which have been pumped through the company’s diverse ecosystem of businesses.
Iger, 66, previously was slated to leave the company at the end of June 2018. His new deal ends July 2, 2019.
“Even with the incredible success the company has achieved, I am confident that Disney’s best days are still ahead, and I look forward to continuing to build on our proven strategy for growth while working with the board to identify a successor as CEO and ensure a successful transition,” Iger said in a statement.
Iger said in February during a conference call with analysts that he was “open” to extending his deal — if the board deemed that the best course of action.
Thomas Staggs, Iger’s former heir apparent, left Disney’s No. 2 post last year. Staggs’ departure, which came after Disney’s board privately expressed a lack of confidence in him, threw Disney’s carefully orchestrated succession plans into question.
Replacing Iger will be tough in part because of the job description. Disney has a unique culture and far-flung businesses — from superhero movies to cruise ships — that any future CEO would have to fully grasp.
The company’s next leader would inherit a largely different set of challenges from those Iger has tackled. In particular, major changes are afoot in the television industry.
Disney’s cable television business has been hurt by cord-cutting and the slimmed-down TV packages offered by service providers. ESPN, the crown jewel of Disney’s TV unit, has lost more than 9 million subscribers since 2013, according to Nielsen data, and this month it confirmed plans to lay off a number of on-air personalities. Recently, Disney has made moves designed to strengthen its media operation, including a $1 billion investment last year in video streaming company BamTech.
“You probably need someone who is more new-media oriented, so it probably needs to be somebody outside the company,” Michael Alpert, portfolio manager at Stralem & Co., which owns 269,000 shares of Disney, said this month.
“It’s not just the cable business, theme parks business anymore,” Alpert said. “Somebody has to have a grip on that.”