LOS ANGELES (AP) — Disney CEO Robert Iger will remain in
his job through March 2015 and then serve as executive chairman for
another 15 months to help break in a new chief executive, the company
said Friday.
The definite end to what will be a decade-long tenure
suggests the eventual promotion of one of his two closest lieutenants,
either Jay Rasulo, 55, the chief financial officer, or Tom Staggs, 50,
chairman of the parks division. The two veteran executives swapped jobs
in late 2009 in a move that groomed both to take over one day.
Iger,
60, took the reins of The Walt Disney Co. in September 2005 after the
tumultuous ouster of Michael Eisner following a shareholder revolt led
by Roy Disney, the late nephew of the company’s founder.
A former
weatherman who rose through the ranks of ABC, Iger has orchestrated some
of the company’s biggest acquisitions, including the $7.4 billion
purchase of animated movie studio Pixar in 2006 and the $4.2 billion
acquisition of comic book giant Marvel in 2009.
Disney said its
total shareholder return during his tenure is five times higher than
that of the S&P 500. The stock increased 41 percent during that
time.
Iger entered the Disney executive track when the house of
Mickey Mouse bought Capital Cities/ABC for $19 billion in 1995. That
deal also brought pay TV juggernaut ESPN to Disney.
One of Iger’s
first moves as chief executive was to right relations with Steve Jobs,
the just-deceased Apple Inc. co-founder. Jobs worked with Iger to bring
ABC shows to iTunes and ended up being Disney’s largest shareholder and
go-to adviser through its purchase of Pixar. On Wednesday, Iger called
Jobs "a great friend."
Iger will also become chairman of Disney
after John Pepper retires at the 2012 shareholder meeting in March. The
board will also select an independent lead director.
Iger’s contract had been set to expire in January 2013.
"The
board is delighted that the company has been able to secure the
longer-term continuation of Bob’s unique blend of experience and
leadership skills," Pepper said in a statement. "His ability to bring
together the many parts of Disney’s business against a clear and proven
strategy, while instilling a culture of innovation, collaboration and
discipline, will continue to serve the long-term interests of
shareholders."
In 2010, Iger was awarded a pay package valued at $28 million, up 30 percent from a year earlier.
He received no upfront signing bonus for his new contract.
But
a securities filing said he will receive an annual salary of $2.5
million, up from $2 million, and an incentive bonus target of $12
million per year through fiscal 2015, up from the target of $10 million
earlier. Disney’s fiscal year ends in late September or early October.
His annual stock grants bonus target was also set higher, at $15.5 million through fiscal 2015, up from
$9 million.
Both
the cash and stock grant bonuses are based on the company meeting its
financial targets and could be higher or lower than the target amount.
Disney shares were down 33 cents, or 1 percent, to close Friday at $31.70.
Copyright 2011 The Associated Press.