BURBANK (dpa-AFX) - Walt Disney Co. (DIS) chief executive officer Robert Iger will assume the additional role of chairman of the board in March 2012 and hold both positions through March 31, 2015, at which time a new CEO would be named, the diversified media and entertainment giant said Friday.
After relinquishing the CEO role, Iger will continue to serve the company as executive chairman of its board for 15 months through June 30, 2016.
The Burbank, California-based company did not name Iger's successors for either CEO or chairman.
Friday's announcement came in light of a new employment agreement that extended Iger's contract with the company through June 2016. Iger's current contract was set to expire on January 31, 2013.
John Pepper, the current chairman of the Disney board, will retire at the company's annual shareholder meeting in March. He does not plan to run for re-election to the board at the meeting.
'As one of the most iconic brands and preeminent companies in the world, The Walt Disney Company requires a leader with the proven ability to drive creative and financial success in a dynamic world. For more than six years, Bob Iger has proven he has that ability at the highest level,' said Pepper.
The new contract provides that Iger will be paid an annual base salary of $2.5 million, which is an increase of $500,000 from the previous contract. Under the new contract, his annual incentive bonus target is increased to $12 million for each of fiscal years 2012 through 2015, from the target of $10 million earlier, and set at $6 million for fiscal year 2016, when Iger would be expected to be serving solely as the executive chairman. His annual equity-based long-term incentive award target was also set higher, at $15.5 million through fiscal 2015, up from $9 million.
Iger, 60, became Disney CEO in September 2005, replacing Michael Eisner who was ousted following a shareholder revolt led by Roy Disney, the late nephew of the company's founder Walt Disney. Before that, Iger was the company's president and chief operating officer.
Just a few months after taking over as CEO, in 2006, Iger oversaw Disney's $7.4 billion acquiition of Pixar Animation Studios in a deal that also made the just deceased Apple, Inc. co-founder Steve Jobs, then Pixar's CEO, Disney's largest shareholder. Iger also led the company to acquire Marvel Entertainment, the comics and movie company behind 'Iron Man' and other series, for $4.4 billion in 2009.
In August, Disney reported third quarter profit that increased 11% year-over-year to $1.48 billion, as improved results at its media networks, parks and resorts and consumer products divisions more than offset continued weak results at its studio entertainment and interactive media divisions.
Iger, born in Long Island, New York, began his career as a weatherman for a local television station. He joined the American Broadcasting Co. in 1974 and gradually rose through its ranks. He served as president of the ABC Network Television Group from 1993-94, and then was named president and chief operating officer of ABC's corporate parent, Capital Cities/ABC. In 1996, Walt Disney Co. bought Capital Cities/ABC and renamed it ABC, Inc., where Iger remained president until 1999.
In February 1999, Disney named Iger president of Walt Disney International, as well as chairman of the ABC Group. The company appointed Iger its president and chief operating officer in January 2000.
Disney shares, which have traded in a range of $28.19 to $44.34 over the past year, closed Friday's regular trading session at $31.70, down 33 cents or 1.03%. The stock is currently gaining 28 cents in after hours trading.
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