Disney extends Robert Iger's term till 2016

MUMBAI: The Walt Disney Company has extended Robert Iger?s contract to remain the CEO and chairman through 30 June, 2016.

Iger who became the chief executive on 30 September, 2005, has led the company to record financial results and significant growth through the acquisitions of Pixar, Marvel and Lucasfilm. Iger has also been instrumental in making major investments in the company?s Parks and Resorts business and the expansion into key international markets.

"For nearly eight years as chief executive officer, Bob Iger has proven he has the unique ability to drive creative and financial success at the world?s preeminent entertainment company," said Disney Board independent lead director Orin C. Smith.

"Disney has hit new heights during Iger?s tenure, with total shareholder return of 193 per cent that dramatically exceeds the S&P 500s 54 per cent, and a market capitalisation that has risen to $113.7 billion from $48.4 billion when he became CEO in 2005. Iger?s ability to consistently deliver against a strategy of producing high-quality branded content, technological innovation and international expansion has repeatedly resulted in record revenue, net income, and earnings per share for the company," he added.

Iger?s outstanding leadership and the need to provide continuity of Disney?s corporate strategy to create long-term value for shareholders, has led the board to take this decision. "We have asked Iger to remain the CEO and chairman until the expiration of his contract on 30 June, 2016 under his existing annual compensation terms as CEO, under which 92 per cent of his pay was performance-based in fiscal 2012," informed Smith.

Originally, Iger was to have relinquished his CEO position and transitioned to the role of executive chairman on 1 April, 2015 for 15 months. "Now, Disney will continue to have the full benefit of Iger?s leadership as CEO and chairman for the duration of his tenure. The board remains focused on effective succession planning, and will continue to develop a sound and appropriate process for ensuring a smooth management transition," he said.

Acknowledging the confidence bestowed by the board, Iger said, "I sincerely appreciate this vote of confidence by the board of directors, and will continue to work with our talented and dedicated management team to drive creative excellence, innovation and continued growth."