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Bob Iger's contract is extended
- Thread starter Rteetz
- Start date
Gringrinngghost
Well-Known Member
It states near the end:
In the event that you are terminated earlier as a result of the Company’s exercise of its Termination Right or a Termination for Good Reason, the rights and obligations described in paragraphs 3, 4 and 5 shall be treated as Conditional Rights under Section 5(d) of the Agreement and any compensation payable with respect thereto shall be payable subject to the satisfaction or waiver of the conditions applicable to Conditional Rights.
Paragraph 3: His security
Paragraph 4: The 5M Bonus
Paragraph 5: Consultation
IanDLBZF
Well-Known Member
Add on to that they still need to search for his successor as well!
Cmdr_Crimson
Well-Known Member
the.dreamfinder
Well-Known Member
And ramping down the share buybacks.
lazyboy97o
Well-Known Member
It almost seems as though Iger fears leaving. He is the one who made a big to-do about leaving on a schedule, but as other endeavors fall apart he just keeps sticking around for one more year.
BrentSienna
Active Member
This explains the disturbance in the Force I sensed this morning, well that or the pizza I ate far too late last night. Either way, blah!
So either Chapek isn't ready and needs more "grooming" or Iger is realizing he doesn't have "the right stuff"?
Or Iger wants to make sure all three new lands are awesome...and open on his watch. Imgaine the pressure those project heads now feel. "My last day as CEO is 7/2/2019. I want SW Land at WDW open just before that so I'm doing the ribbon cutting!"
Or Iger wants to make sure all three new lands are awesome...and open on his watch. Imgaine the pressure those project heads now feel. "My last day as CEO is 7/2/2019. I want SW Land at WDW open just before that so I'm doing the ribbon cutting!"
GrumpyFan
Well-Known Member
I don't think it's him as much as it is the board and their fears. They still don't have a viable candidate lined up to take his place. And after last year's successful run at the box office, plus other divisions performing very well, they have good reason to be afraid. Without someone who is equally as strong, and skillful to lead the company in the same manner, they would do well to keep him around as long as they can.
Quotes from the article:
“Given Bob Iger’s outstanding leadership, his record of success in a changing media landscape, and his clear strategic vision for Disney’s future, it is obvious that the Company and its shareholders will be best served by his continued leadership as the Board conducts the robust process of identifying a successor and ensuring a smooth transition,” said Orin C. Smith, Independent Lead Director of the Disney Board.
“Mr. Iger has led The Walt Disney Company to unprecedented success during his 11 years as CEO, driving Disney to new creative heights, expanding the Company’s global reach, fostering technological innovation, and delivering year-after-year of record financial results. During his tenure, Mr. Iger has created enormous value for shareholders, with total shareholder return of 448%, compared to 144% for the S&P 500, and a dramatic increase in the Company’s market capitalization to $177 billion from $46 billion.”
- Translation: We continue to rake in the cash, and it doesn't appear to be slowing, so we're just gonna keep him on until it looks like he either quits or looks to be running out of gas.
Whether you or I like him or not, agree with what he's done in the parks or not, under his leadership, the board and the stockholders are VERY happy with him staying where he is.
And in the end, that's all that matters....
lazyboy97o
Well-Known Member
Why do people think Chairman of Walt Disney Parks and Resorts is some grand stepping stone?
It wasn't the board who said he was leaving, he did.
Stockholders are stupid.
CaptainAmerica
Premium Member
Because Staggs and Rasulo were both in that role. The stepping stone position in that exchange was obviously CFO. Parks Chairman was a holding ground.
The_Bellringer
Active Member
Wow really? That's super interesting...
GrumpyFan
Well-Known Member
Not sure what the problem there is.
True, he had announced he was leaving at the end of his original contract, which should be expected. However, the board has asked him to stay, or extended him three times now. He himself stated in February, "If it's in the best interests of the company for me to extend my term, I'm open to that".
With the kind of money they're bringing in right now, I'm thinking if I was him, and I still had an interest in it, and they still wanted me around, I would take it.
Disney's Termination Right and Iger's option of Termination for Good Reason are both separate from voluntary resignation and Termination for Cause, which are the two items I addressed earlier. From Iger's original employment agreement:
“Termination Right” means the right of the Company, in its sole, absolute and unfettered discretion, to terminate Executive’s employment under this Agreement for any reason or no reason whatsoever. For the avoidance of doubt, any Termination for Cause effected by the Company shall not constitute the exercise of its Termination Right.
“Termination for Good Reason” means a termination of Executive’s employment by Executive within 30 days of the Company’s failure to cure, in accordance with the procedures set forth below, any of the following events: ***This list is exhaustive, so I won't list everything but suffice it to say that it does not include voluntary resignation.***
“Termination for Cause” means a termination of Executive’s employment by the Company due to: ***Again, fairly exhaustive but it mostly boils down to Iger being convicted or pleading no contest to a felony, or him refusing to perform his duties.***
Ultimately, if Iger voluntarily resigns, he doesn't have to consult for Disney. If he gets in legal trouble or stops performing his duties, he doesn't have to consult for Disney. If Disney terminates him for any other reason or if he quits for Good Reason, then the security, bonus, and consulting sections would be considered Conditional Rights. The original employment agreement says that he is entitled to the Conditional Rights only if he signs the General Release attached to the original agreement as Exhibit A. The release says that he gets the Conditional Rights by giving up severance payments or any other form of payment besides what's already been agreed upon. Looks to be a way to prevent a huge golden parachute, although I'd argue the current setup is already more than generous.
Original Employment Agreement: https://www.sec.gov/Archives/edgar/data/1001039/000119312511321340/d232174dex101.htm
TP2000
Well-Known Member
Eh, I could think of worse things. But by 2019 the welcome mat will be wearing thin.
The guy has nothing else to do. He tried to get a post-Disney career going with his leadership of an NFL team in LA, but he fell flat on his face and the NFL owners were NOT impressed with his presentation and voted against him. LA is getting two NFL teams now, and Iger's group lost badly and embarrassingly in that deal.
He's had exploratory dabblings in getting into politics as a California Senator, but the political winds in California don't allow for a pro-business moderate Democrat to win against the California/DC political machine now.
And while he's obviously got a good Botox man in his employ, at 66 he's not getting any younger. Iger doesn't appear to have a post-Disney career of any meaning, and he really wants to cut the ribbon on Star Wars Land. At least he's not as bad as Eisner in his waning years.
the.dreamfinder
Well-Known Member
College/University president?
