The Walt Disney Company will extend CEO Bob Iger’s deal by two years, extending his tenure through 2026.
Shares of the corporate were effectively flat after the news.
Iger told CNBC in February that he had no intention to remain longer than two years in his post, which might have taken him through 2024. Iger returned to Disney in November, retaking the job from Bob Chapek, who was appointed CEO in early 2020. Iger planned to organize his next successor during his latest stint as CEO.
The succession process stays a key issue for Iger, who noted in an announcement Wednesday that the board of directors of the corporate continues to judge candidates for the post. “I would like to make sure Disney is strongly positioned when my successor takes the helm,” Iger said of extending his contract. “The importance of the succession process can’t be overstated.”
Iger has delayed succession decisions before, nonetheless. On 4 different occasions between 2013 and 2017, he prolonged his tenure as CEO after saying he planned to retire.
Iger’s second tenure at Disney has coincided with upheaval within the legacy media space. Big players equivalent to Disney have needed to contend with a rapidly shifting landscape, as ad dollars dry up and consumers increasingly cut off their cable subscriptions in favor of streaming.
Tune in: CNBC’s David Faber will interview Disney CEO Bob Iger on CNBC’s “Squawk Box” at 8 a.m. ET on Thursday.
Yet, the streaming space has been difficult to navigate in recent quarters, as expenses have swelled and consumers turn into 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 primary half of this yr together with the broader market.
Since he returned, Iger has undertaken a broad restructuring of the corporate, including 7,000 layoffs.
“We have made essential and sometimes difficult decisions to handle some existing structural and efficiency issues, and I’m pleased with what we have been in a position to achieve together,” Iger wrote in a memo to employees that was obtained by CNBC on Wednesday. “But there may be more to perform before this transformative work is complete, and I’m committed to seeing this through.”
Disney has been pulling programming from its streaming services to get monetary savings. The corporate can also be attempting to pull its animation business out of a major rut, as its latest Pixar movie, “Elemental,” recorded the lowest opening weekend gross for the studio for the reason that original “Toy Story” premiered in 1995.
When Disney recently finished shedding 7,000 employees, it saw the departure of veteran Chief Financial Officer Christine McCarthy.
“Bob has once more set Disney on the correct strategic path for ongoing value creation, and to make sure the successful completion of this transformation while also allowing ample time to position a latest CEO for long-term success, the board determined it’s in one of the best interest of shareholders to increase his tenure, and he has agreed to our request to stay Chief Executive Officer through the tip of 2026,” said Mark Parker, Disney’s chairman.
CNBC’s David Faber will interview Iger on CNBC’s “Squawk Box” at 8 a.m. ET on Thursday.
Read Iger’s full memo to Disney employees:
Dear Fellow Employees,
I would like to thanks in your tremendous dedication, patience, and optimism as we have taken essential steps to reposition the corporate 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 completely understand the tremendous opportunities before us, in addition to the challenges we face on quite a few fronts.
We have made essential and sometimes difficult decisions to handle some existing structural and efficiency issues, and I’m pleased with what we have been in a position to achieve together. But there may be more to perform before this transformative work is complete, and I’m committed to seeing this through.
To that end, I’m writing to share that I actually have agreed to the Disney Board’s request to stay CEO for an extra two years – through the tip of 2026.
As I’ve said persistently since we began this essential transformation of the corporate, our progress won’t be linear as we proceed navigating a difficult economic environment and the tectonic shifts occurring in our industry. It is a moment that requires us to stay steadfast, strategic, and clear-eyed concerning the road ahead.
It is usually essential to me that Disney is strongly positioned when my successor takes the helm. Because the Board continues to judge a highly qualified slate of internal and external candidates, I remain intensely focused on a successful CEO transition.
Through all of it, I’m unwaveringly optimistic about Disney’s future. I think on this company. I think within the leadership team I actually have around me. And I think in you – our spectacular employees and Solid Members. It’s an honor to work alongside you as we chart Disney’s path forward together, and I stay up for all that we’ll proceed to realize over the approaching years.
Thanks for all you do,
Bob
— CNBC’s Alex Sherman, Kerry Caufield and David Faber contributed to this report.
