Bob Iger's contract as Chairman and Chief Executive Officer extended to 2019

Mar 28, 2017 in "The Walt Disney Company"

Posted: Tuesday March 28, 2017 9:56am EDT by WDWMAGIC Staff

The Walt Disney Company announced late last week that it has extended the contract of Chairman and CEO Bob Iger.

Iger, 66, will now stay in his role at the company until July 2 2019, a position he has held for the last 11 years.

This will be the fourth time that his position at the company has been extended, after previously announcing departure dates from the company.

Iger's last extension with the company was to be until June 2018, announced in 2014. Disney had previously announced a June 30 2016 departure date in July 2013, then in October 2011 that Iger would step down as CEO on March 31 2015, and then serve as Chairman until June 30 2016.

"Given Bob Iger's outstanding leadership, his record of success in a changing media landscape, and his clear strategic vision for Disney's future, it is obvious that the Company and its shareholders will be best served by his continued leadership as the Board conducts the robust process of identifying a successor and ensuring a smooth transition," said Orin C. Smith, Independent Lead Director of the Disney Board.

"Leading this great company is a tremendous privilege, and I am honored to have been asked to continue serving as CEO through July 2, 2019," Mr. Iger said. "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."

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ford91exploderOct 05, 2017

Because it's possible to love Disney and absolutely despise the way it's run now. Many happy memories were created there. And more happy memories could made again under a new management team, This one will run TWDC into the ground and float off on their golden parachutes.

Tom P.Oct 05, 2017

Then why are you here? I am not trying to be snarky or argumentative. I am genuinely curious. It seems odd that someone who is so soured on Disney, and does not enjoy their product at all any longer, would want to spend their leisure time on a message board for Disney fans.

ford91exploderOct 05, 2017

Considering that it's widely reported that Ike and Bob do not get along at all, I imagine that Ike would happily jump on board with activist investors.

ford91exploderOct 05, 2017

Unfortunately, I've seen too many instances of @ford91exploder twisting data I that provided into something that's unrecognizable. :p One difference is I have ZERO pixie dust left with respect to Disney and I cut them zero slack, So I look at Disney like an industrial concern. My DVC is up for sale soon after my last point renter's stay is complete. So I'm putting my money where my mouth is. No I'm not a financial professional, Just someone in the tech industry who's watched multiple companies crash and burn because they were unable to adapt to the changing environment and/or decided that Wall St was more important than the people who bought their products and services.

the.dreamfinderOct 05, 2017

Funny how folks forget that Disney doesn’t own all of ESPN, only 80%.

ParentsOf4Oct 05, 2017

Even a broken clock is right twice a day... The problem is it's easy to miss the 2 minutes that are right when the other 23 hours and 58 minutes are wrong. :D Unfortunately, I've seen too many instances of @ford91exploder twisting data I provided into something that's unrecognizable. :p

rael ramoneOct 05, 2017

I'm thinking that they may have a more pressing concern coming up..... like, say..... next earnings.... (or a future earnings) One of the defenses people have about $DIS is that it's P/E is at a discount to the S&P 500. When I looked that up, what jumped out to me is it's Forward P/E. It was about 10% lower then the current one. Which suggests that the analyst community expects 10% growth. Where does this growth come from with ESPN/Media shrinkage, the costs necessary to get the streaming channels ramped up, and possibly domestic parks not delivering the growth they think all the price increases & upcharges were going to deliver? I think the analyst community may still have too much pixie dust in their projections. And it's analyst projections that dictate whether you hit or miss when it comes to earnings, regardless of what the company gave out as guidance. So, at some point there could be a BIG miss coming up. One that causes a SIGNIFICANT dip. The fact that the dip will be bought won't make them happy if the ones doing the buying are named Icahn, Ackman, or Loeb. Then you've got someone pushing for multiple seats on the board, and demanding short term changes to 'enhance shareholder value'. And the question is if Old Man Ike and his shares would side with the activist investor when there's a proxy fight... It's not just about $$$ with executives. It's about power as well. If these guys load up on your shares, you lose some of your power...

peter11435Oct 05, 2017

Doubtful

CLEtoWDWOct 05, 2017

Ouimet just announced his upcoming resignation from Cedar Fair. Is it possible the Disney alum is coming back to take over for Iger as CEO? The timing of the whole thing makes me curious.

ford91exploderOct 05, 2017

Disney is on the hook for a lot more than 2 billion per year for broadcast rights. Verizon or Google are another set of companies which could use ESPN and paradoxically ESPN could be more valuable to them when revenue goes negative as losses there would offset gains in other businesses. Plus they have the necessary skillset to move ESPN to an online platform while retaining the legacy cable business.

ford91exploderOct 05, 2017

Disney is a highly successful business outside of the ESPN unit, Yes ESPN still makes money but in less than 5 years it will cost Disney more to operate ESPN than ESPN generates in revenue and worse its all FIXED COST. Disney needs to jettison the ESPN business, or make it a wholly owned subsidiary. Its absolutely no accident after the failure of the Altice Cable deal that Iger bailed, Yes Disney got a little more money, But what Disney wanted was a minimum of a 50% increase in per subscriber rates. But Altice can't do that unless they want to accelerate cable cutting its not in Altice's interest to need to boost cable rates by 10-15 bucks to accommodate Disney's needs. Disney's other choice is a strategic bankruptcy to bring everyone to the table and re-negotiate the rights deals in a way that fits modern viewing pattens. A more realistic rights deal would allocate revenue on a per-subscriber basis which would for the first time have the leagues have some skin in the game. If people dont like what they see on the field well that leagues's revenue goes down too. The converse is also true if people like what they see revenue goes up. The problem with the current model is all the risk is on Disney's plate and the leagues get 'free money'

HauntedPirateOct 05, 2017

There is a nugget of truth in what Ford is saying. ESPN is on the hook for a ton of money for various broadcast rights in the coming years. Don't quote me on this (I saw the breakdown somewhere but cannot recall where I saw it) but I believe the number is north of $2 billion per year between the various broadcast contracts they have, with the NBA being the biggest chunk of that. ESPN is simply not the 800-lb gorilla it once was, and with a shrinking subscriber base it's going to be much harder, if not impossible, to command continued higher subscriber fees and commercial rates. Personally, I think the best suitor for ESPN, *if* Disney was looking to unload it, would be a company that has deep pockets and already has an established streaming platform. We shouldn't be in de-nile about it, it could be Amaz-ing... ;)

larryzOct 05, 2017

From the optimistic viewpoint, it's possible that ABC/Disney could find someone who started in P&R and who's comfortable with the media/sports/TV/publishing sides and could step in at the CEO level to maximize synergy among the divisions... It's possible...

Tom P.Oct 05, 2017

The basic premise of your argument seems to be that no matter what Disney does or who the leadership is, it is doomed to bankruptcy and total failure and that nothing and no one can prevent that. Pardon me if I just don't buy that.