Disney: Iger Extends His Comeback for Two More Years

Disney Stock at a Glance

• Fair Value Estimate: $145
• Morningstar Rating: 4 stars
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Wide

In a thoroughly unsurprising move, the Disney DIS board has extended CEO Bob Iger’s contract another two years beyond its original two-year term, making it last until the end of 2026. As we predicted upon his return last year, the original term was too short for Iger to both correct the ship at Disney and find a successor. While we believe Iger and the board both expect his term to end in 2026, we would not be surprised if the two sides decide to run it back another two years. We are maintaining our $145 fair value estimate for the company’s stock.

The move follows former CFO Christine McCarthy stepping down last month to take a family medical leave of absence. With McCarthy’s departure, many of the former senior executives under Iger during his first stint at Disney are no longer around. Former CEO Bob Chapek and his lieutenant, Kareem Daniel, were let go in November 2022. Former head of direct-to-consumer and chief strategy officer Kevin Mayer left in May 2020 after losing the CEO “bake-off” to Chapek; he is currently co-CEO of Candle Media along with former Disney COO and CFO Tom Staggs, who departed in May 2016 after the board refused to designate him Iger’s CEO-in-waiting. A number of senior executives jumped ship in 2019 and 2020 after Disney’s acquisition of 21st Century Fox and its entertainment assets. Given these losses, we think one of the reasons for the extension of Iger’s contract is to allow him time to rebuild the company’s senior executive team.