Money

Bob Iger is staying at Disney

Published

5 months ago

July 13, 2023

ticker NEWS

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.

Money

RBA maintains 4.35% rates as mortgage applications surge

Published

13 hours ago

December 5, 2023

ticker NEWS

The Reserve Bank of Australia (RBA) has decided to keep its official cash rate at 4.35%, citing concerns over the rapidly increasing number of mortgage applications.

This decision comes after several consecutive meetings where the RBA has refrained from adjusting interest rates.

The central bank’s decision to hold rates steady reflects their cautious approach to managing the current housing market boom. Mortgage applications have seen a significant surge in recent months, driven by record-low interest rates and increased demand for housing. While this has been a boon for the real estate industry, it has raised concerns about the potential for a housing bubble and financial stability.

Experts are divided on whether the RBA’s decision is the right course of action.

Some argue that maintaining low-interest rates is necessary to support economic recovery, especially in the wake of the COVID-19 pandemic. Others worry that the continued surge in mortgage applications without rate adjustments could lead to unsustainable levels of household debt.

In light of this decision, homeowners, prospective buyers, and investors will be closely watching the housing market’s trajectory and wondering how long the RBA can maintain its current stance.

Money

There’s a 50/50 chance of a 2024 recession

Published

19 hours ago

December 5, 2023

ticker NEWS

The economy has been remarkably resilient despite massive pressures – but is that about to change in 2024?

The US economy is in for a sharp slowdown in 2024 as a closely watched survey of top economists foresees stubbornly high inflation, a rise in unemployment and a 50% chance of recession.

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Money

Tesla insurance sued for ‘inflated’ premiums, judge rules

Published

22 hours ago

December 5, 2023

ticker NEWS

A judge has ruled that Tesla’s insurance unit must face a lawsuit alleging “inflated” premiums.

The decision comes after policyholders claimed the electric car company’s insurance division overcharged them for coverage.

The lawsuit, which was filed by a group of Tesla policyholders, alleges that the premiums charged by Tesla’s insurance unit were significantly higher than market rates for similar coverage.

The plaintiffs argue that Tesla’s insurance division engaged in unfair pricing practices, leading to overpayment by policyholders.

Tesla has not yet commented on the judge’s decision, but the lawsuit raises questions about the transparency and fairness of the company’s insurance pricing.

It also highlights the growing scrutiny on how tech companies enter and compete in traditional industries like insurance.