[News Figures] Bob Iger, Disney CEO with Extended Term... Can He Overcome the Crisis?

Board of Directors Unanimously Approves 'Eiger Term Extension'
Cost-Cutting Restructuring Underway Since Return in November Last Year

Robert Bob Iger, the CEO who returned to save the 'content empire' Walt Disney amid poor performance and crisis, has decided to remain in his position until 2026. Having successfully led Disney for 15 years, attention is focused on whether he can once again solidify the faltering Disney business framework and safely find a successor to complete the succession process.

Robert Bob Iger, CEO of Disney
[Photo by Reuters]

According to Bloomberg and other sources on the 12th (local time), Disney's board announced that it would extend CEO Iger's term by two years, from the original November 2024 to December 2026. He retired from his position in 2021 but returned as CEO last November after Disney faced difficulties due to poor performance and a decline in stock price, responding to the board's call.

Disney explained, "The extension of CEO Iger's term is intended to provide continuity in leadership during the company's ongoing transformation and to secure time to find a successor CEO and replace the management team."

CEO Iger is a representative figure who has led 21st-century Disney. He served as Disney's CEO for 15 years from 2005 to 2021. During this period, Disney acquired Pixar, Marvel, Lucasfilm, 21st Century Fox, and built the Shanghai Disney Resort. The Disney movies released in 2010 and onward were all hits, continuing a streak of blockbusters.

As a result, Disney's market capitalization expanded fivefold during his tenure. Annual shareholder returns also exceeded 14% during his time in office, significantly higher than competitors like Comcast, according to foreign media reports.

Disney brought him back because the company is currently facing difficulties. The overall business is struggling to generate profits, and growth has stalled, which is problematic.

The streaming service Disney+ is struggling to secure subscribers, falling behind Netflix, and there are reports of decreased visitors to Disney World, which was a stable revenue base. Additionally, the recent box office failure of the movie "The Little Mermaid" indicates that the business is facing challenges. Investor anxiety is growing ahead of Disney's quarterly earnings announcement scheduled for the 9th of next month.

Moreover, political conflicts with Florida Governor Ron DeSantis, who is mentioned as a Republican presidential candidate, are also troubling Disney. Governor DeSantis has called Disney "Woke Disney" due to issues related to political correctness (PC) and diversity, creating controversies that need to be resolved.

After returning to Disney last year, CEO Iger mentioned that he would correct the significant losses incurred by the Disney+ streaming business launched in 2019. In February, he announced a restructuring plan to cut 7,000 employees and reduce costs by $5.5 billion (approximately 7 trillion KRW) to secure profitability.

CEO Iger said, "Disney's long-term future is incredibly bright, but there is still more work to be done for transformation," adding that he is fully focused on a successful (management) transition. He continued, "Our progress will not be linear amid the difficult economic environment and structural changes occurring in our industry," emphasizing, "This is a moment that requires a consistent and strategic approach."

As part of this contract extension, CEO Iger will receive an annual performance bonus equivalent to 500% of his salary.

This content was produced with the assistance of AI translation services.