Kareem Daniel, the chairman of Walt Disney Co.’s huge media and leisure distribution section, is leaving the corporate as a part of an organizational reshuffling that comes a day after Robert Iger returned as chief government, in line with an organization be aware to workers seen by MarketWatch.
The transfer marks the departure of one of many prime executives appointed below former CEO Bob Chapek, who was ousted Sunday as part of Iger’s appointment to the highest function. Chapek took over for Iger as Disney
DIS,
+6.30%
CEO in 2020.
Iger, within the memo, mentioned Disney would quickly start “organizational and working modifications” to avoid wasting on prices and, he mentioned, give artistic groups extra affect.
“I’ve requested Dana Walden, Alan Bergman, Jimmy Pitaro, and Christine McCarthy to work collectively on the design of a brand new construction that places extra decision-making again within the arms of our artistic groups and rationalizes prices, and this can necessitate a reorganization of Disney Media & Leisure Distribution,” Iger mentioned within the memo.
“In consequence, Kareem Daniel can be leaving the corporate, and I hope you’ll all be part of me in thanking him for his a few years of service to Disney,” the memo continued.
Iger mentioned his objective was to have a brand new construction for Disney in place “within the coming months.” He mentioned the corporate would share extra info “over the approaching weeks.”
Disney shares have been largely unchanged after hours. They rose 6.3% to $97.58 within the common session, the inventory’s finest day since Dec. 11, 2020.
For extra: Disney inventory enjoys finest day in almost two years upon Iger’s return, as ‘maybe the most effective chief in media’ is again
The media and leisure distribution division covers all of its movie and TV manufacturing and distribution — together with channels like ABC and ESPN in addition to streaming providers like Disney+. The division additionally handles content material gross sales and licensing duties. Chapek created the brand new company construction not lengthy after he took the helm in an effort to lean extra on streaming.
Iger returned to the helm after Disney executives forecast slower gross sales development within the coming yr, following 1 / 4 by which a smaller slate of theatrical releases weighed on content material gross sales, and softer ends in its parks and media segments.
In line with a submitting with the Securities and Trade Fee earlier within the day, Iger’s contract runs via Dec. 31, 2024 and provides him an annual base wage of $1 million, in addition to a yearly bonus of as much as $1 million in money and $25 million in inventory.
Opinion: ‘Steve Jobs Syndrome’ strikes as Disney brings again Bob Iger, however historical past is just not on their aspect
He may even function a director on Disney’s board till the corporate’s 2023 annual assembly. The submitting mentioned the corporate “exercised its proper to terminate with out trigger the employment of Robert A. Chapek as Chief Govt Workplace.” Chapek additionally resigned from the board.
Iger was beforehand CEO of Disney from 2005 to February 2020.
Disney inventory has plummeted 37% up to now this yr. The S&P 500 index
SPX,
-0.39%
has fallen 17% over that point.