Global media giant Walt Disney Company has decided to extend Chief Executive Officer (CEO) Bob Iger’s contract by two years, which means means he shall hold the post through 2026.
Iger had returned to Disney in November 2022 after he took over from then CEO Bob Chapek who had been appointed in 2020. Iger had plans to prepare his successor during his fresh stint as the top boss.
Earlier in February, the Disney CEO had told CNBC US that he did not intend to stay longer than two years in his post, which would have taken him through 2024.
This is not the first time that Iger had delayed his decision to stay on. Between 2013 and 2017, he had extended his tenure as CEO four times after declaring that he planned to retire.
In his letter to employees announcing his latest move, he wrote, “It is also important to me that Disney is strongly positioned when my successor takes the helm. As the Board continues to evaluate a highly qualified slate of internal and external candidates, I remain intensely focused on a successful CEO transition.” He noted that the importance of the succession process cannot be overstated.
Iger made a comeback at Disney in November, months after he retired, as the entertainment company looked to boost investor confidence and profits at its streaming media unit.
The going in the the streaming space has been difficult to navigate in recent quarters not just for Disney but others too, as expenses have swelled and consumers become more conscious about their media spending. The slowdown in streaming subscribers cut valuations for Netflix, Disney, Warner Bros. Discovery and Paramount Global roughly in half in 2022, before several of the stocks rebounded in the first half of this year along with the broader market, CNBC reported.
Earlier in February, the company announced it would implement 7,000 job cuts as part of an effort to save $5.5 billion in costs and return power to Disney's creative executives. The plan prompted activist investor Nelson Peltz to end his quest for a board seat, saying he was happy with Iger's restructuring.
According to a Reuters report, this was Disney's third restructuring in five years and marked a new chapter in the leadership of Iger, who first became CEO in 2005. Iger seeks to put Disney's streaming business on a path to growth and profitability while restoring decision-making to the company's creative leaders.
Read Iger’s full memo to Disney employees
Dear Fellow Employees,
I want to thank you for your tremendous dedication, patience, and optimism as we’ve taken important steps to reposition the company for enduring creative and financial success. 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 face on numerous fronts.
We’ve made important and sometimes difficult decisions to address some existing structural and efficiency issues, and I’m proud of what we’ve been able to achieve together. But there is more to accomplish before this transformative work is complete, and I am committed to seeing this through.
To that end, I’m writing to share that I have agreed to the Disney Board’s request to remain CEO for an additional two years – through the end of 2026.
As I’ve said many times since we began this important transformation of the company, our progress will not be linear as we continue navigating a difficult economic environment and the tectonic shifts occurring in our industry. This is a moment that requires us to remain steadfast, strategic, and clear-eyed about the road ahead.
It is also important to me that Disney is strongly positioned when my successor takes the helm. As the Board continues to evaluate a highly qualified slate of internal and external candidates, I remain intensely focused on a successful CEO transition.
Through it all, I am unwaveringly optimistic about Disney’s future. I believe in this company. I believe in the leadership team I have around me. And I believe in you – our spectacular employees and Cast Members. It’s an honor to work alongside you as we chart Disney’s path forward together, and I look forward to all that we will continue to achieve over the coming years.
Thank you for all you do,
Bob
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