Disney CEO to Step Down in 2015 (DIS)

Walt Disney Company (NYSE: DIS), the global entertainment company, has laid out a succession plan under which it’s current CEO, Robert Iger will step down from in 2015.

In a SEC filing, the Burbank, California-based company said that the current Chairman, John Pepper elected to retire from the company. Pepper will replaced by Iger as the Chairman at the company’s annual shareholder meeting in March 2012.

Meanwhile, Iger will continue as CEO and Chairman until March 31, 2015 after which he will only serve as the company’s Executive Chairman. The media and entertainment company also said that Iger’s existing contract, which was set to expire on January 31, 2013, has been replaced by a new contract that runs until June 2016.

Under the terms of the new contract, Iger will receive a $2.5 million annual salary and an annual bonus based on the company’s operating income, return on invested capital earnings per share and after-tax free cash flow.

Pepper informed Disney’s board about his decision to resign from the post to the company on Wednesday. The company also said that it will elect a new lead independent director.

Commenting on Pepper’s contribution to Disney, Iger said that no CEO could have a better counselor than John and that his impeccable integrity, vast experience and knowledge and appreciation of Disney have been invaluable.

In the SEC filing, Disney said that its board concluded that securing Iger’s leadership and skills for a period of almost five years was of critical importance and value to the company.

Disney shares are marginally lower in trading today. At last check, the stock was trading 0.59% lower at $31.84. The stock is up almost 7% in the last three trading sessions.

Year-to-date Disney shares are down 15.09%, compared with a decline of 7.95% for the S&P 500.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.