© Reuters. Robert Iger arrives at the Sandy Hook Promise Benefit in New York City, U.S., December 6, 2022. REUTERS/David ‘Dee’ Delgado/File Photo
(Reuters) -Walt Disney’s board on Wednesday extended Chief Executive Officer Robert Iger’s contract by two years as the experienced leader who came out of retirement in 2022 battles long-term challenges to its film and television businesses.
The board said in a statement that it aimed to maintain “continuity of leadership during the company’s ongoing transformation.”
Iger returned to Disney as CEO in November 2022, less than a year after he retired, vowing to stay for two more years to restore the business while seeking a more durable replacement after the company pushed out Bob Chapek, Iger’s hand-picked successor.
“There is more to accomplish before this transformative work is complete,” Iger said in a statement, adding that the board was continuing to interview internal and external CEO candidates.
He faces challenges on multiple fronts during a period of significant transition in entertainment and media. The streaming video business, once viewed as the future of media, continues to lose money.
Terms of his contract include opportunity to receive an annual incentive bonus of five times his base salary. In his previous contract, he was entitled to an estimated $27 million per year in total compensation.
Weak box office performance of marquee titles have also challenged Iger’s effort to turn around the empire.
Meanwhile, the television business is confronting long term and likely irreversible declines in audiences.
In February, Disney said it would cut 7,000 jobs in a major overhaul to save $5.5 billion in costs.
Disney shares edged higher in after hours trading.
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