Robert Iger has stepped down as CEO of Disney and is being replaced by Bob Chapek, who headed parks and resorts.

Iger worked at Disney for 14 years. During that time, Iger has primarily focused on making key acquisitions that would position Disney to remain the entertainment giant status it has enjoyed for decades.

More specifically, Iger headed acquisitions of Pixar, Marvel Entertainment, Lucasfilm and 21st Century Fox. The acquisition of 21st Century Fox now provides access to enough content that allows Disney to be a viable competitor against Netflix in the streaming services sector.

These acquisitions have cost Disney billions of dollars but have paid off. Under Iger, revenue and total net income has increased a substantial amount.

However, news of the leadership change was unexpected. Internally, there had not been the expectation that Iger would step down nor was there widespread awareness of an internal search for Iger’s replacement. Iger has consistently put off his retirement a total of four times.

Iger will remain involved with Disney until the end of the year and focus on the company’s creative projects. Chapek has signed a three-year contract that compensates him at $25 million annually.

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Economics, Finance and Investing