Disney has announced the extension of Bob Iger’s contract as CEO until the end of 2026.

Initially, Iger’s return to the company in November was intended to be a short-term arrangement, with the task of finding a new successor by the end of 2024. However, the independent directors of Disney unanimously voted to extend his term by two years.

Iger’s first tenure as CEO began in 2005 and lasted for an impressive 15 years. During this time, he oversaw significant acquisitions and remarkable growth, but also witnessed the departure of several potential successors.

Ultimately, Bob Chapek, the former theme parks chief, was chosen as his successor, but his tenure was marked by conflicts and accusations of Iger undermining him, lasting only 33 months.

Under his new contract, Iger now has the opportunity to earn five times his base salary in annual bonuses, a significant increase from the previous arrangement of one times salary.

Disney stated that Iger’s extension would provide continuity of leadership during the company’s ongoing transformation and allow for a smoother CEO succession. Iger himself expressed his belief in Disney’s bright future but acknowledged that there was still more to accomplish before his eventual successor takes over. The board is currently evaluating both internal and external candidates for the position.

This decision comes at a challenging time for Disney, as the company faces criticism for its support of LGBTQ causes, creative concerns following the box office disappointment of Pixar’s “Elemental,” declining cable television revenues affecting ESPN and other brands, a writers’ strike in Hollywood, rising sports rights costs, and the need to improve the profitability of its streaming service, Disney+.

Despite these challenges, Iger’s contract extension aims to provide stability and ensure that the company is well-positioned for the future. His continued leadership will play a crucial role in addressing these issues and successfully transitioning to a new CEO when the time comes.