Bob Iger, the CEO of the Walt Disney Company, has signed a new contract with the company. Disney says that after the end of the renewed contract, in March, 2015, Iger "will then move to a lesser role for a year before leaving Disney entirely," according to The New York Times Media Decoder blog.
The article continues, "It is unusual for a company to flag a chief’s departure so far in advance, and the decision by Disney, the world’s largest entertainment company, to do so could invite distraction as senior executives scramble to position themselves as successors. But Disney characterized the move as an effort to lock up Mr. Iger for as long as possible while signaling a careful succession strategy to Wall Street…"
No successor has been determined yet.
Iger will be 65 when he totally exits the company in June, 2016, the article notes, saying that Disney’s mandatory retirement age for board members is 74.
The story adds, "Mr. Iger’s new contract, which replaces one that still had two years before expiring, contains notable changes to his compensation. His base annual salary will increase 25 percent, to $2.5 million, with a higher annual bonus target. But unlike his previous contract, this one does not provide an upfront stock-option grant as an additional signing bonus; the previous contract provided one valued at $25 million.
"Mr. Iger’s salary and bonus last year was about $16 million. His total compensation, including equity awards, was about $28 million, according to documents filed with the Securities and Exchange Commission."