Disney Extends CEO Robert Iger's Tenure to 2019 -- 2nd Update

By Ben Fritz 

With no successor to take the helm at the world's largest media company, Robert Iger will stay on at least one additional year as head of Walt Disney Co., the company said Thursday.

Disney's board has extended Mr. Iger's contract as chief executive and chairman through to July 2, 2019. His deal had previously been set to end on June 30, 2018. The change marked the third time Mr. Iger's tenure has been extended.

Previously set to retire in 2015 and then 2016, Mr. Iger said when his contract was extended to 2018 that "this time I really mean" to retire.

The new extension gives Disney's board more time to find a potential new CEO. Tom Staggs, a veteran executive who was named chief operating officer in 2015, was widely viewed as the most likely candidate, but last year he quit after learning the board, including Mr. Iger, had lost confidence in him.

Mr. Iger's contract extension calls for his compensation in fiscal 2019 to be determined on the same basis as fiscal 2016. However, he will also receive a $5 million bonus if he stays until July 2, 2019. The extension also calls for Mr. Iger to serve as a consultant to Disney for three additional years, earning $2 million for each of the first two years and $1 million for the third.

"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," Mr. Iger said in a statement.

The Wall Street Journal reported last month that Disney's board was considering extending Mr. Iger's contract.

Write to Ben Fritz at [e-mail]

(END) Dow Jones Newswires

March 23, 2017 13:25 ET (17:25 GMT)

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