SAN FRANCISCO – Walt Disney’s board of directors named President Robert Iger as its new chief executive officer on Sunday.
Calling Iger “the best possible person for the job,” Chairman George Mitchell said the newly named CEO combines the right blend of “continuity and a recognition of needed change.”
Iger will succeed embattled CEO Michael Eisner, who will step down Sept. 30. The board stripped Eisner of his chairman title last March.
Disney’s board met Saturday to discuss the search for a replacement CEO. The naming of Iger to the post Sunday had been expected.
Iger has been president of the media giant since 2000 and was an executive at Capital Cities/ABC Inc. before Disney bought it in 1996.
Eisner tapped Iger several months ago as his chosen successor.
The board had hired a search firm to recruit external candidates, but found it difficult to attract people because of Eisner’s support for Iger, according to reports.
One high-profile name under consideration, eBay CEO Meg Whitman, withdrew her candidacy on Friday.
The naming of Iger could raise the ire of dissident shareholders Roy Disney and Stanley Gold who, on Thursday, issued a letter to the board asking them to stop allowing Eisner to sit in on interviews for his replacement. In their letter, the two former directors also called on the board to investigate the company’s 2001 purchase of the Fox Family Channel.
It has been alleged that company executives covered up mistakes made in making the $5.3 billion acquisition.
On a call with reporters Sunday, Mitchell responded to questions about Gold and Roy Disney’s claims that Eisner had dominated the recruiting process, calling the allegations “absolutely and totally false.”
Mitchell said that Eisner was not involved in any interview with Iger and had only participated in part of a meeting with one external candidate.
He said that the board will now focus on its search for an independent director and his replacement. Mitchell has said that he plans to retire from the chairmanship at the next annual meeting.
Shares of Walt Disney closed down 41 cents at $27.59 on Friday.
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