Disney CEO’s salary increases to $41 million as plans for succession move forward
Disney CEO Bob Iger is set to embark on his final two years in office with a substantial increase in compensation. The ESPN parent company recently disclosed that Iger’s total 2024 compensation jumped to $41.1 million, marking a 30% increase from the previous year’s $31.6 million. The majority of his pay was in the form of stock and option awards and incentives—an approach Disney’s board adopted to align his compensation with the company’s performance.
Disney’s stock surged by 20% over the past year, accompanied by several impressive quarterly reports. This boom comes as Disney has navigated a transition towards a streaming-focused future, spearheaded by ESPN’s upcoming “Flagship.” This strategic pivot, requiring challenging multiyear efforts and staff reductions, is now yielding positive results. “We have emerged from a period of considerable challenges and disruption well positioned for growth and optimistic about our future,” remarked Iger during Disney’s last quarterly earnings call with analysts. The company is expected to report its financial results on Feb. 5.
Amid Iger’s leadership, Disney experienced significant victories in 2024, such as retaining NBA rights and securing rights for the expanded College Football Playoff. Looking ahead, Disney aims to designate a new CEO by “early 2026,” after initially planning Iger’s exit by the end of 2024. A two-year extension signed in 2023 shifted this timeline to December of next year.
Disney’s succession planning committee has been actively engaged in the process, signaling promising progress according to company board chair James Gorman. While ESPN chairman Jimmy Pitaro is a longstanding contender for the CEO position, recent speculations suggest potential external candidates, like Electronic Arts CEO Andrew Wilson. Gorman reassured shareholders that the board is dedicated to identifying the best fit for Disney’s leadership, emphasizing a smooth transition—a pivotal task given Iger’s 2022 return following Bob Chapek’s removal.
In conclusion, Iger’s tenure at Disney has been marked by remarkable advancements, intertwined with challenges and strategic shifts shaping the company’s future. As he prepares to hand over the reins, the groundwork is being laid for a seamless transition to ensure Disney’s continued success beyond his tenure.
