Along with the news of the Disney-Fox deal that come out last week, Disney has also announced that they have extended the contract of Bob Iger,Chairman and Chief Executive, through 2021.
The extension was not a total surprise. It was expected as a way to give the company stability though the integration of Fox’s assets. The deal is likely to face a lengthy review period, and will take 12 to 18 months to close the company said.
Iger is staying “at the request of both 21st Century Fox and the Disney board of directors,” according to Disney.
And he will be well compensated for his extended time with Disney. His annual base salary is expected to increase to $3 million at the beginning of 2018. This is an increase of 20% over his previous contract. After Fox transaction closes, his base salary will rise to $3.5 million. The company has set a target bonus of $20 million for Iger, plus $25 million in stock.
Originally Iger was set to pass on the reigns at the end of June 2016. A two-year extension in 2014 changed that. His contract was extended again in March to run through July 2, 2019, giving Disney additional time to search for a successor.
Iger’s time at Disney has been hugely successful for investors. The company’s overall stock-market value has grown 256% since Iger became CEO. This is more than double the 117% increase in the benchmark Standard & Poor’s 500 index during that span. The current overall stock-mark value is not at $163 billion.
The next head of Disney will certainly have big shoes to fill. And since few inside candidates have emerged through the search, it is thought Disney will be looking outside of the company. Or perhaps the Fox deal will offer a new candidate pool.
This latest extension will give Disney time to find the best possible successor for Iger.
Source: Orlando Sentinel
Photo Credit: Disney
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