Bob Iger, Disney’s current CEO has recently agreed to a contract extension which could earn him as much as $60 million if the company can reach an operating income of $78.314 billion by the time his contract ends in mid 2018. Iger will stay on as the company’s CEO until June 2018, a whole two years later than his initial retirement date. Originally, Iger was scheduled to step down from his position in March 2015, which would have happened shortly after the release of the first Disney produced Star Wars sequel and the opening of a Disney theme park and Shanghai, China. However, prior to the most recent extension, Disney decided to keep Iger on until June 2016. Michael Nathanson, senior analysts at Moffett Nathanson research says that after such a wonderful career, Iger is just “not ready to go.” During Iger’s tenure as CEO, which began in 2005, “total shareholder return has increased to 311%, compared to just 92% for the S&P 500, and Disney’s market capitalization has risen to $150 billion from $48.4 billion.”
Igor originally joined the Disney company in 1999 with dual roles as the president of Walt Disney International and as the chairman of the ABC group. In 2006 Igor personally negotiated Disney’s purchase of Pixar for $7.4 billion. Roy E. Disney, nephew of Walt Disney, and a former executive, who had once been critical of Iger released this statement showing his approval and appreciation for Iger’s work: “Animation has always been the heart and soul of The Walt Disney Company and it is wonderful to see Bob Iger and the company embraces that heritage by bringing the outstanding animation talent of the Pixar team back into the fold. This clearly solidifies the Walt Disney Company’s position as the dominant leader in motion picture animation and we applaud and support Bob Iger’s vision.”
Iger is currently regarded as one of America’s top executives and this contract extensions will give him even more time to cement his legacy. Last year, Iger earned $34.3 million as Disney’s CEO, and while the contract extension doesn’t outright guarantee him more money, it certainly leaves the option available, and with Iger’s track record, that $60 million is almost certain.
(Photo by Joe Raedle/Getty Images)
