Disney CEO Bob Iger has exercised options to sell roughly $42.7 million worth of Disney stock. The two-time CEO will not pocket all $42,667,125.16, but rather the difference between the strike price of $92.24 per share established in 2014 and the price that Iger sold for today. If we assume Iger sold the shares for $115 per share, you’re looking at a profit of somewhere in the neighborhood of $8.4 million.
The shares that Iger sold were vested stock options Iger was granted in 2014 that were set to expire in December. The stock was awarded and sold under Rule 10b5-1, which allows company executives to trade stock while avoiding concerns of insider trading. Disney stock is up some 32% since Disney outlined the terms of the trading plan.
In a November 14th filing, Disney outlined the terms of the sale:
On August 14, 2024, Robert A. Iger, the Company’s Chief Executive Officer and a Director on the Company’s Board of Directors, adopted a trading plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended.
Mr. Iger’s trading plan provides for the potential exercise of vested stock options granted to Mr. Iger on December 18, 2014, which will expire December 18, 2024, and the associated sale of up to 372,412 shares of the Company’s common stock, excluding 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. Mr. Iger’s trading plan is scheduled to terminate on December 17, 2024, subject to early termination.
Iger is on his second tour as Disney CEO after returning to the company two years ago after former CEO Bob Chapek was fired. Iger is currently scheduled to end his contract at the end of 2026, and the hunt for a new CEO is underway, with both internal and external candidates under consideration.
A new CEO will be named in early 2026, according to James P. Gorman, the Chair of Disney’s Succession Planning Committee.
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