The Walt Disney Company announced today that the Board of Directors has extended Bob Iger’s contract as Chairman and Chief Executive Officer to July 2, 2019.
Iger had a contract running through June 2018 and his annual salary will remain unchanged, but he’ll get $5 million for agreeing to the extension.
The company has struggled to find a potential successor to Mr. Iger. Tom Staggs, was viewed as a potential heir but stepped down from his role as chief operating officer last May. The contract extension buys time to turn around both the struggling ESPN sports network and search for his successor. After news of the announcement, Walt Disney stock went up 0.39%
In the past few months, rumors has circled around that Hollywood insiders are yearning for Mr. Iger to run for President of the United States in the 2020 election. There is a new stipend in the agreement that would potentially inhibit his chance to run for political office.
In the Form 8-K (used to notify investors in US public companies of specified events that may be important to shareholders or the SEC) when Mr Iger either fulfils his contract to July 2, 2019 he will become a consultant for the Walt Disney Company for 3 years. If Disney exercises their Termination Rights or a Termination for Good Reason, he will remain contingent upon his performance as a consultant for the 3 years. Mr. Iger will also receive an additional $5 million payment that would be paid out during the consultation period.