Disney CEO Bob Iger is attending the conference this Wednesday in Sun Valley, Idaho. KEVIN DIETSCH (Getty Images via AFP)
When word got around late last year that Bob Iger was coming home, it wasn’t an exaggeration. Disney made signs this Wednesday welcoming one of its most beloved executives. The company said in a statement that it has extended his contract as CEO until 2026. With that, the entertainment giant is changing its plans for Iger, who returned late last year to take the helm following the sacking of Bob Chapek. Then it was reported that 72-year-old Iger’s return would only last for two years and he was preparing a successor. However, the decision taken in July of this year indicates continuity.
Under the new agreement, Iger will remain CEO until the end of December 2026. The news was positively received by the market. The company’s shares rose slightly to close at $90.15 per share. However, the price is almost 50% below the price of two years ago. The news caught Iger in Idaho, where he is attending the Sun Valley conference, a large annual gathering of executives from media and entertainment companies. “There is still more work to be done before this transformation is complete. “I’m committed to going through with it,” Iger assured employees in an email sent out after the announcement.
This extends his second term at the helm of the company. The first lasted 15 years until the general manager announced in February 2020 that he was retiring, handing over the baton to Chapek, who was in charge of parks and products. Iger’s early management brought financial strength to the Happiest Place on Earth as Mickey Mouse Territory loves to advertise itself. The CEO made Disney a global brand in just over a decade thanks to acquisitions of Pixar, Marvel, Lucasfilm and 21st Century Fox.
The second management at the helm of the giant was very different. Iger returned to the Burbank offices in November 2022 after the failure of Chapek, an executive who failed to convince board members and the company’s thousands of fans. It was a complex moment. He had to lead the company in times of crisis and after a pandemic that was accelerating change in the industry. Its video-on-demand platform, Disney+, had lost more than $10 billion since its launch in 2019. His leadership was questioned by an activist investor who called for a contingency plan to cut costs. In response to the outrage led by Nelson Peltz, Iger announced in February that it would cut 7,000 jobs across the company. It was a strategy aimed at reducing operating costs by $5.5 billion.
In his message to the employees, Iger referred to these austerity measures in the industry, which is also affected by the writers’ strike. “Our progress will not be linear as we continue to navigate a challenging economic environment and seismic shifts in our industry. “It’s a moment that requires a firm and strategic vision that sets out a clear path,” added the executive.
In early June, Disney completed its third and final round of layoffs, affecting studios, entertainment and product divisions, and parks. As part of this resource-reduction plan, sports broadcaster ESPN reported the firing of 20 figures who were at the scene. These included Jeff van Gundy, the NBA coach-turned-basketball analyst, former NBA player Jalen Rose, and presenter Max Kellerman. In other rounds, the company had cut 300 jobs in Beijing. These were all employees who looked after the streaming services included in Disney +.
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