Business

Disney CEO Bob Iger steps down

The Walt Disney Co. has named Bob Chapek CEO, replacing Bob Iger, effective immediately.

The Walt Disney Co. has named Bob Chapek as replacement

In this Dec. 16, 2019, file photo, Disney CEO Robert Iger arrives at the world premiere of Star Wars: The Rise of Skywalker, in Los Angeles. The Walt Disney Co. announced Tuesday Iger has stepped down and that he'll be replaced by Bob Chapek. (Jordan Strauss/Invision/The Associated Press)

Disney CEO Bob Iger, who steered the company through successful purchases of Star Wars, Marvel and Fox's entertainment businesses, is stepping down immediately, the company said in a surprise announcement Tuesday.

The Walt Disney Co. named Bob Chapek as his replacement. Chapek was most recently chairman of Disney Parks, Experiences and Products.

Iger will remain executive chairman through the end of his contract Dec. 31, 2021.

Iger said it was an "optimal time" for him to step down following Disney's acquisition of Fox's entertainment assets and the launch of Disney Plus streaming service in November.

"Did not see this coming — Wowza," tweeted LightShed media analyst Rich Greenfield.

Chapek is only the seventh CEO in Disney history.

2nd highest paid CEO

Iger became CEO of Disney in 2005, succeeding longtime chief Michael Eisner. He steered Disney through successful acquisitions of Lucasfilms, Marvel, Pixar and other brands that became big moneymakers for Disney.

He was the No. 2 highest paid CEO in 2018, as calculated by The Associated Press and Equilar, an executive data firm. He earned $65.6 million. The top earner was Discovery's David Zaslav who earned $129.5 million.

Susan Arnold, the independent lead director of the Disney board said succession planning had been ongoing for several years.

Chapek was head of the parks, experiences and products division since it was created in 2018. Before that he was chairman of Walt Disney Parks and Resorts since 2015. Before that, he was president of the Disney Consumer Products segment from 2011 to 2015.