Bob Iger will keep his job as chairman and CEO of the Walt Disney Company for an additional two years after Disney's Board of Directors extended his contract through June 2018.
The Disney Board announced the extension Thursday. There were no other changes in the terms of Iger's contract.
Iger, 63, had previously planned to step down as CEO next year and as chairman in 2016, but later decided to stay on due to the demands of Disney's acquisition of Lucasfilm and the "Star Wars" franchise. The upcoming "Episode VII" of the Star Wars series, the first film in the franchise since 2005, is scheduled for release in December 2015.
Iger became CEO of Disney in 2005 after the board's ouster of Michael Eisner. He became chairman in 2012 to replace the retiring John Pepper.
In addition to Lucasfilm, Disney has also acquired Pixar and Marvel Entertainment under Iger. In the last year, the Disney animated film "Frozen" became the fifth highest grossing movie of all time.
In Central Florida — where Disney is the largest employer in the region, including more than 60,000 Walt Disney World cast members — Iger has overseen multiple theme park expansions. Those include New Fantasyland at the Magic Kingdom, the upcoming addition to Disney's Animal Kingdom based on the film "Avatar," and an unspecified expansion coming to Disney's Hollywood Studios in the area where the long-running Studio Backlot Tour closed last week.
Elsewhere in Disney's theme park world, Shanghai Disneyland is set to open at the end of 2015.
Official release from the Walt Disney Company
The Walt Disney Company (NYSE:DIS) Board of Directors announced today that it has extended Robert A. Iger’s contract as Chairman and Chief Executive Officer through June 30, 2018.
“Bob Iger is the architect of Disney’s current success, with a proven history of delivering record financial results for the company quarter after quarter and year after year,” said Orin C. Smith, Independent Lead Director of the Disney Board. “Under his tenure, Disney has reached unprecedented creative and financial heights, driving the stock price to record levels and creating extraordinary value for shareholders. He has transformed Disney’s culture and empowered its businesses to effectively capitalize on evolving markets and new technologies, making Disney a company that doesn’t merely embrace change, but leads it.
“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.
Mr. Smith continued: “Mr. Iger’s vision and strategy for the company led to the successful acquisitions of Pixar, Marvel and Lucasfilm, the resurgence of Disney animation, and the dramatic expansion of its parks and resorts around the world, positioning the company for continued long-term growth. Given Mr. Iger’s outstanding record to date, it is obvious that shareholders and the company will be best served by his continued leadership, which is why the Board of Directors has asked him to extend his contract for two years, to June 30, 2018. I am pleased to report that Mr. Iger has accepted. Disney has an incredibly strong senior management team, and the Board is confident in the leadership talent available for succession planning.”
“I’ve had the privilege of being the CEO of this great company for nine years and am thrilled to have the opportunity to continue through June 2018,” Mr. Iger said. “I’m very excited about what lies ahead, including the release of our Star Wars films and the launch of Shanghai Disneyland, and I’m honored to continue working with our talented management team and the 175,000 dedicated people who make this company what it is today.”
The extension of Mr. Iger’s contract through June 30, 2018 maintains the same annual compensation terms as his existing contract. In addition, Mr. Iger will have the opportunity to earn a performance-based retention bonus if certain financial performance goals are met over a five-year period ending with fiscal year 2018. Details will be filed tomorrow in a Report on Form 8-K.
Since Mr. Iger, 63, became CEO, The Walt Disney Company has repeatedly been recognized as one of the “Most Reputable Companies” in both America and the world by Forbes magazine (2006-2014); one of “America’s Most Admired Companies” by Fortune magazine (2009-2014); one of the “World’s Most Respected Companies” by Barron’s (2009-2014); and as “Company of the Year” by Yahoo Finance (2013).