Disney, CEO Bob Iger to extend contract despite stock performance

Bob Iger’s return as Walt Disney CEO has been met with challenges and it’s becoming evident that the initial two-year contract may not be enough time to revitalize investor confidence in the company. Disney stock has trailed the market in 2023, as headwinds have positioned the company in a downward trend for nearly six months.

Should Disney extend CEO Bob Iger’s contract given the stock’s recent performance?

How Has Disney Stock Fared With Bob Iger as CEO?

Disney stock has declined by 3% since his appointment, in contrast to the general market’s 11% increase during the same period.

Extending Iger’s contract would be an admission by both parties that the original timeframe was insufficient to revitalize investor confidence in the company. However, that doesn’t mean it isn’t the right move.

Frustrated investors should remember that Disney’s stock decline cannot solely be attributed to Iger. The weak advertising market and underperforming animated features were preexisting factors when he came on board. Additionally, the slump in theme park attendance began prior to his return.

Despite these challenges, Iger is still the person best suited for the job. He has focused on making Disney+ profitable by the end of 2024 and aims to achieve $5.5 billion in annual savings.

Nonetheless, Iger’s initial successes have been overshadowed by the stock’s performance and both parties are beginning to realize that a two-year timeframe might not have been enough time.

What’s Next For Disney Stock Under Bob Iger?

Iger made a comeback as the CEO of Walt Disney nearly eight months ago and his return sparked optimism among investors. However, the initial excitement has since faded and traders have become impatient with the stock’s recent performance.

In the past, Disney has suffered from periods of mediocrity and mismanagement, leading to a decline in its brand reputation. Iger initially approached the role with determination, but now recognizes the need for a more calculated approach.

Still, there are plenty of reasons to be optimistic about Disney stock. The company remains a prominent player in the theme park industry and has produced many successful movie releases since Iger’s return. Although Disney+ subscriber growth has recently slowed, achieving a nine-figure subscriber base within four years is a significant accomplishment.

While Disney’s stock price has declined, the company seems to have recognized the positive strides made under Iger’s leadership. The future of Disney is at stake and it’s important to give Iger the time that he needs to make things right.