Bob Iger Signs New Five Year Contract with Walt Disney

October 08 00:00 2011

New York, October 8 ( – Bob Iger will remain the CEO of Walt Disney Co (NYSE: DIS) till 2015 as per the terms of a new five-year contract that he has signed. In March 2012, he will assume the additional charge of chairman when the current board chairman, John E. Pepper Jr. retires. Thereafter he will have the dual responsibilities of chairman and chief executive for three years, until a successor takes over the responsibilities of the chief executive. Iger will become executive chairman at that time and serve until June, 2016 when he will leave the company at the age of 65.

Iger will receive an annual salary, under his new contract, of no less than $2.5 million which is $500,000 more than his previous employment agreement. During the period that he will hold both offices, his annual incentive bonus could increase to $12 million, based on the company’s performance that would include operating income, free cash flow, earnings per share and return on invested capital.

Charles Elson, director of the Weinberg Center for Corporate Governance at the University of Delaware, said that “Given the controversy surrounding that position, I’m rather surprised they’ve combined that role. The modern trend has been to separate the two. … At this point, I don’t see any good reason for re-combining it. Doing so only creates more controversy.”