Disney's (DIS) Lack of Succession Plan Puts Iger on Hot Seat
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Shares of Disney (NYSE: DIS) are trading stronger Tuesday heading into its annual meeting of shareholders. One question on many investors' minds is that of succession.
CEO Bob Iger will be under fire following one of the worst film seasons Disney has seen in a while. It's "John Carter," which took about $350 million to make according to the NY Post, drew in only $31 million over its opening weekend. Disney is looking to write-off about $100 million in the quarter from the flop.
There is really no succession plan in place for Iger either. Last year, the 60-year old said he would assume dual roles of Chairman and CEO until his expected retirement in March 2015, at which time a successor will be named.
The Street doesn't want to wait that long. According to the Post, two immediate candidates are CFO James Rasulo and Theme Parks lead Tom Staggs (who was also formerly CFO). Of the two, Staggs is the favorite, with many analysts expecting Disney to do well if he's appointed in the lead position.
Many aren't pleased with the combination of CEO and Chairman roles either. The Post quotes Connecticut Treasurer Denise Nappier in questioning the move. When former CEO Michael Eisner stepped down in 2005, the roles were split.
Further, Napier, the Florida State Board of Administration, and proxy advisor ISIS are all pushing for the ousting of four Board members.
Disney shares are up 1.5 percent Tuesday. Shares climbed steadily since last October, now trading near annual highs reached last May. Looking back five years, the stock is up 30 percent from levels in the lower-$30 range and investors have also been enjoying a 1.4 percent dividend yield in the median.
CEO Bob Iger will be under fire following one of the worst film seasons Disney has seen in a while. It's "John Carter," which took about $350 million to make according to the NY Post, drew in only $31 million over its opening weekend. Disney is looking to write-off about $100 million in the quarter from the flop.
There is really no succession plan in place for Iger either. Last year, the 60-year old said he would assume dual roles of Chairman and CEO until his expected retirement in March 2015, at which time a successor will be named.
The Street doesn't want to wait that long. According to the Post, two immediate candidates are CFO James Rasulo and Theme Parks lead Tom Staggs (who was also formerly CFO). Of the two, Staggs is the favorite, with many analysts expecting Disney to do well if he's appointed in the lead position.
Many aren't pleased with the combination of CEO and Chairman roles either. The Post quotes Connecticut Treasurer Denise Nappier in questioning the move. When former CEO Michael Eisner stepped down in 2005, the roles were split.
Further, Napier, the Florida State Board of Administration, and proxy advisor ISIS are all pushing for the ousting of four Board members.
Disney shares are up 1.5 percent Tuesday. Shares climbed steadily since last October, now trading near annual highs reached last May. Looking back five years, the stock is up 30 percent from levels in the lower-$30 range and investors have also been enjoying a 1.4 percent dividend yield in the median.
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