Disney Extends Contract Of CEO Robert Iger For Two Years - Update

(RTTNews) - Media and entertainment conglomerate Walt Disney Co (DIS) said Thursday its board extended the contract of Robert Iger as chairman and chief executive officer for two years through the end of June 2018.

This is the second time Iger's contract has been extended. His earlier contract was set to expire in 2016.

Iger was instrumental in Disney's success and has a proven record of delivering strong financial results, said Orin Smith, independent lead director of the Disney board.

Smith credited Iger for having taken Disney to creative and financial heights, and for having incorporated new technologies and capitalizing on evolving markets.

Iger, who became CEO in 2005, oversaw the $7.4 billion acquisition of Pixar Animation Studios in 2006, following a period of strained relations with the animation studio. He also led the company to acquire Marvel Entertainment in 2009 and Lucasfilm in 2012, further broadening Disney's intellectual property franchises, and was responsible for the resurgence of Disney animation.

Under Iger, total shareholder return at Disney increased to 311 percent, and market capitalization more than tripled to $150 billion.

Disney said the extension of Iger's contract through June 2018 maintains the same annual compensation terms as his existing contract. Also Iger will have the opportunity to earn a performance-based retention bonus if certain financial performance goals are met over a five-year period ending with fiscal year 2018.

In August, Disney reported a 22 percent rise in quarterly profit, led by performance of all its business segments especially its movie division. Disney is awaiting the release of its Star Wars films and the launch of Shanghai Disneyland.

Walt Disney stock is trading at $86.72, down $0.77 or 0.88%, on a volume of 8.4 million shares on the NYSE.