Bob Iger has signed a new employment agreement to keep him at the Walt Disney Company through June 2016. But by then he won’t be CEO any longer.
The transition is tied to the decision by John Pepper Jr., currently Chairman of the board of directors, not to stand for re-election to the board at the 2012 annual shareholders meeting. Iger will then become Chairman, but also retain his CEO title through March 31, 2015. By then he should have his successor in place as CEO and Iger will continue as Chairman through June 30, 2016.
Iger also gets a pay raise. His base pay is now $2.5 million, up a half million from his previous contract. He’s also entitled to a bonus with a beginning target of $10 million for the first year.
RBR-TVBR observation: Speculation began in November 2009 that Iger was starting to work on his succession plan when he had Tom Staggs and James Rasulo switch jobs. The thinking was that he wanted to see Staggs in an operating role and Rasulo in a financial role so he could decide whether one or the other should succeed him as CEO. Staggs, formerly CFO for many years, has now had nearly two years as Chairman, Walt Disney Parks and Resorts, and Rasulo, who previously headed the parks, nearly two years as CFO of the entire company. Iger still has the better part of three years to decide which to choose – or even to look at other candidates.