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Bob Iger’s journey as the CEO of The Walt Disney Company has been marked by significant achievements and challenging setbacks. Initially leading Disney for 15 years, Iger was responsible for transformative acquisitions, including Marvel and Lucasfilm, and successfully launching the Shanghai Disney Resort. His leadership was widely praised by shareholders and fans alike.
However, after stepping down in February 2020, Iger’s successor, Bob Chapek, faced immediate difficulties due to the COVID-19 pandemic, leading to park closures and production halts.
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Related: Bob Chapek’s Wife Called Her Husband Bob Iger’s “Lapdog”
Iger returned to the CEO role in November 2022 after Chapek’s dismissal, compelled by the board’s waning confidence in Chapek’s leadership. Unfortunately, Iger’s second term has not mirrored the success of his earlier tenure. Under his guidance, Disney has faced considerable pressures, including a contentious boardroom atmosphere and fluctuating stock prices.
Notably, a recent hostile takeover attempt by investor Nelson Peltz has added to the challenges Iger has encountered since his return.
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According to recent reports, Bob Iger plans to sell up to 372,412 shares of Disney stock, which, based on current market conditions, could have a potential total value of around $41 million.
The move is part of a Rule 10b5-1 trading plan, which gives Iger the option to exercise vested stock options that were granted to him on Dec. 18, 2014, and expire on Dec. 18, 2024. Per the filing, Iger’s trading plan is scheduled to terminate on Dec. 17, subject to early termination.
The plan is designed to allow a company insider to sell or buy a predetermined number of company shares at a set price and time in accordance with SEC Rule 10b5-1, which helps them avoid insider trading accusations. The sale excludes any shares used to “effect a cashless exercise or withheld to satisfy tax withholding obligations in connection with the exercise or net settlement of the option awards,” the filing noted.
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Related: Bob Iger “Obsessed” With Avoiding Another Bob Chapek Mistake
Since Iger’s return, Disney’s stock price has experienced notable volatility. After opening at approximately $110.33, the stock rose to a high of $114.81 during recent trading sessions, buoyed by a positive earnings report.
This reflects a significant recovery from earlier lows, with the stock bouncing back from a 52-week low of $83.91 in August. The recent earnings call highlighted a strong fiscal year performance, with optimistic signals from various business segments, particularly streaming services.
Despite this uptick, Iger’s plans to sell Disney stock raise lingering doubts about the company’s long-term outlook. While the stock performance has improved, it remains below its peak of $123.74 earlier in the year, indicating persistent market skepticism about Disney’s future prospects.
What do you think about Bob Iger becoming $40 million richer? Do you think he should be allowed to sell so much stock at once? Share your thoughts in the comments!
