Walt Disney Co.has signed a new contract with its chief executive Robert Iger for five more years while at the same time laying the groundwork for a succession plan at the top of the entertainment conglomerate.
Iger, 60, will also take on the title of chairman of Disney after the company's 2012 annual meeting, when current non-executive chairman John Pepper is expected to step back.
In a regulatory filing, Disney said its new employment agreement with Iger will keep him in the CEO position until March 31, 2015, and in the chairman position through June 2016.
Disney said it intends for the new five-year contract with Iger to "provide for a smooth transition of his duties and responsibilites as CEO toward the end of that period."
Iger is also getting a raise. His base salary under the new deal will be $2.5 million a year, an increase of $500,000 from the previous agreement. His bonus target is also going from not less than $10 million a year to not less than $12 million. The target is based on the company's performance -- operating income, free cash flow, earnings per-share and return on invested capital -- and is not guaranteed.
--Joe Flint, Los Angeles Times
Photo: Robert Iger. Credit: Disney.