Chairman and CEO of the Walt Disney Company, Bob Iger, has extended his contract for an additional two years. The newest contract will last through June 30, 2018.
According to Deadline, the succession plan of the company is still in question. The plan had been for Iger to step down as CEO sometime in mid 2015. With the extension, investors wonder if too much power is being given in this role for the amount of time in that position.
As for his compensation terms, nothing will be changed. Though he will still have a chance for a performance-based retention bonus if profits exceed the company’s financial goals.
Independent Lead Director Orin C. Smith said, “By setting a clear business strategy based on producing high-quality branded content, technological innovation and international expansion — and then over-delivering against that strategy — Mr. Iger has repeatedly proven himself to be a highly effective leader able to create long-term shareholder value. Since he became CEO in 2005, total shareholder return has increased to 311%, compared to just 92% for the S&P 500, and Disney’s market capitalization has risen to $150 billion from $48.4 billion.”
What is your take on the contract extension?
