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Disney has already agreed to pay former CEO Bob Iger $10 million a year to recommend its replacement. made a sensational comeback.
Iger retired after 15 years as a senior executive at Disney and was replaced by Bob Chapek in February 2020. When the COVID-19 pandemic startedhowever, Iger made a shocking return to duty after long periods of loss for the company.
The Financial Times reported this week that Iger is receiving regular installments for consulting “on matters his successor as CEO may request from time to time” until the end of 2026.
Chapek did not appear to be using this asset, and Iger reportedly told friends of his disappointment that Chapek had not sought his advice during a turbulent time for the company, such as Disney’s response to Florida’s Parent Rights in Education bill.
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“Iger has never forgiven Chapek for having Chapek distance himself and take control of the company,” a former executive told the Times. “In some ways, Iger still thought he was going to be coach. Chapek wasn’t keen.”
Disney Chief Executive Bob Iger attended the Special 100-Minute Preview of Peter Jackson’s The Beatles: Get Back at the El Capitan Theater on November 2. 18, 2021 in Hollywood, California. (Charley Gallay/Getty Images for Disney/Getty Images)
Disney has announced that Iger will be taking a break from consulting while performing his active duties as CEO, but will continue consulting after he leaves the company again. Iger currently has a two-year contract.
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Iger’s return came with a major jolt as he announced plans for major “organizational and operational changes within the company” in the coming weeks.
Bob Chapek, Disney’s then-CEO, speaks at the 2022 Disney Legends Awards during Disney’s D23 Expo on September 20 in Anaheim, California. 9, 2022. (REUTERS/Mario Anzuoni/Reuters Photos)
“I intend to restructure everything in a way that honors and respects creativity as the heart and soul of who we are.” Iger wrote in a note uncomfortable throughout the company.
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“This is a time of tremendous change and challenges in our industry, and our work will also focus on building a more efficient and cost-effective structure.”
| Scrolling text | Security | End | Change | Change % |
|---|---|---|---|---|
| EXTERNAL | WALT DISNEY CO. | 98.87 | -0.01 | -0.01% |
| SONY | SONY GROUP INC. | 82.89 | +0.69 | +0.84% |
| WBD | WARNER BROS. KESIF INC. | 11.47 | +0.13 | +1.15% |
| CMCSA | COMCAST INC. | 35.65 | +0.12 | +0.34% |
The announcement caused Disney stock to rebound with a 6.3% gain after falling 40% last year, Reuters reported.
Under Iger in his previous tenure as CEO, Disney bought Pixar, Marvel, Lucasfilm and 21st Century Fox. Iger also oversaw the launch of Disney+.
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Operating losses in the direct-to-consumer segment increased roughly 134% year-over-year to $1.47 billion in the fourth quarter of this year.
Eric Revell of FOX Business contributed to this report.
