Discuss as:

Disney CEO Iger to step down in 2015

Handout / Getty Images

Walt Disney Co. said Friday that Robert Iger, shown here to the right of Mickey Mouse, will be stepping down as CEO in 2015.

Walt Disney Co.'s chief executive Robert Iger will be stepping down in 2015, the company said Friday.

As part of its ongoing succession planning, the entertainment company said Iger, 60, will succeed John Pepper as chairman when Pepper, 73, retires in March of next year. Iger would retain both positions, chairman and CEO, until March 31, 2015, when a new CEO would be named. After that Iger would remain executive chairman until June 30, 2016.

Iger's contract was set to expire on Jan. 31, 2013. 

"The Disney board took action at this time to secure the benefit of Iger's leadership through 2016, provide for an effective, seamless succession and management transition and a continuity of the company's corporate strategy to create long-term value for shareholders," Disney said in a statement.

Disney's statement said Iger's base salary will be $2.5 million a year, up from $2 million now. Disney said Iger is not getting upfront equity as part of the deal and his bonus will be based on the company's performance. He will also be entitled to an annual long-term equity incentive award of options and restricted stock units, Disney said.

The Associated Press reported, however, that based on a securities filing Iger will receive an incentive bonus target of $12 million a year through 2015, up from a target of $10 million. The AP said Iger was awarded a pay package valued at $28 million in 2010, up 30 percent from 2009.

Iger took over as CEO from Michael Eisner, who stepped down in 2005 after two decades at the helm.