Bob Iger’s CEO Contract Extended (Again), The Bob Iger Question, Iger Hints at Divestitures and Partnerships
Hello everyone. It’s good to be a back after a mini summer vacation.
We kick things off where we left off: with Disney. There was quite a bit of news on the Disney front and Apple is once again being pulled into the story. The update begins with Neil’s thoughts on Bob Iger’s CEO contract being extended for another two years. We then look at the question that needs to be asked regarding Iger and Disney. The discussion concludes with the major takeaways from Iger’s interview with CNBC at Sun Valley.
Let’s jump right in.
Bob Iger’s CEO Contract Extended (Again)
Back in November 2022, the Disney board fired CEO Bob Chapek and appointed his predecessor Bob Iger, as his replacement with a two-year contract.
One of Iger’s top priorities was said to be identifying his successor – something that he supposedly spent years doing prior to hand-picking Chapek to succeed him. This past February, Iger told CNBC he had no intention in staying longer than two years.
It looks like Iger needs more time to find that successor. In a press release issued on July 12th, here’s Disney:
"The Walt Disney Company Board of Directors announced today that Robert A. Iger has agreed to continue to serve as Chief Executive Officer through December 31, 2026. In voting unanimously to extend Mr. Iger’s contract by two years, the independent members of the Board of Directors noted that Iger’s extension provides continuity of leadership during the Company’s ongoing transformation, and allows more time to execute a transition plan for CEO succession, which remains a priority for the Board."
This marks the fifth CEO contract extension for Iger, going back to 2013. In the 2010s, a Bob Iger contract extension was accompanied by confidence and relief that Disney got to benefit from Iger’s expertise for more time. Today, it’s the opposite. An extension only raises more questions and doubt about the company’s leadership and lack of succession. The explanation given by Iger last week
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