So it looks like any potential presidential run for Chairman and Chief Executive Bog Iger in 2020 is now on hold. Thursday Walt Disney Co. announced that his contract with the mouse has been extended through December 2021.
The move comes on the heels of Disney announcing its $52.4-billion deal to buy much of 21st Century Fox’s media assets. Iger’s contract extension is no surprise and was expected in the hopes of giving the company stability as it integrates Fox’s assets.
Iger is no stranger to bringing in new assets and integrating them into the Disney family. After taking over in 2005 he led the acquisitions of Pixar, Marvel, and Lucasfilms giving him experience like no one else. He has the most experience and makes the most sense if the deal is to succeed. The deal is valued at more than $50 billion and a smooth transition is exactly what investors want.
Disney said Iger was staying “at the request of both 21st Century Fox and the Disney board of directors.” The company’s overall stock-market value has soared with Iger at the helm and the consistency should keep the board and investors at ease.
Under the terms of his new contract Iger would be well compensated for his efforts, he is expected to receive more than $100 million in stocks based on Disney’s current stock market value.
According to a regulatory filing his base salary will increase 20% at the beginning of 2018 bringing him to $3 million a year. That will rise to $3.5 million once the Fox transaction closes.
The deal gives Disney even more time to find a suitable successor. It will take time to get the necessary federal approvals for the acquisition and even time to integrate the assets after that. Disney has some potential internal candidates in consideration, but it seems increasingly likely the company will look for an outside candidate. It is still possible the deal would see James Murdoch as a replacement after the integration is complete and Iger steps down, but Disney has yet to offer him any position in the company.