Disney CEO Bob Iger sold $42 million worth of company stock last week as the Mouse House prepared for a lengthy process to find a successor.
Mr. Iger, in his second year as chief executive after firing hand-picked protégé Bob Chapek, sold 372,412 shares of Disney stock on Friday. According to a filing with the Securities and Exchange Commission.
The shares were sold for a total market value of $42,667,125.16.
Mr. Iger sold the stock, which was vested stock options granted in 2014 and scheduled to expire in December.
In August, Disney filed a 10-K filing with the SEC under which Mr. Iger would adopt a trading plan that would allow him to exercise vested stock options. The plan was scheduled to expire on December 17th.
The exercise price, or “strike price,” of the options granted in 2014 was $92.24 per share, the price at which he could purchase the stock.
Iger pocketed $8.3 million before taxes, the difference between the exercise price and the stock price at the time of sale.
Disney stock closed Friday at $115.65 per share. The stock rose 0.8% on the day. Disney stock is up more than 27% since the beginning of the year.
The company's stock is up more than 21% this month after the company reported fourth-quarter adjusted earnings that beat Wall Street expectations.
Disney's strong fourth quarter was fueled by the performance of its streaming services and the box office success of “Inside Head 2'' and “Deadpool & Wolverine.''
Disney's profit for the year ended September 28 was $460 million, or 25 cents per share. A year ago, the Burbank, Calif.-based company earned $264 million, or 14 cents per share.
Excluding certain items, earnings were $1.14 per share. This beat the $1.09 per share expected by analysts surveyed by Zacks Investment Research.
The stock rose more than 9% before the market opened on Thursday.
Revenue rose 6% to $22.57 billion, slightly missing Wall Street's forecast of $22.59 billion.
Operating profit for the entertainment division, which includes movie studios and parts of the television division, more than quadrupled to $1.07 billion.
Early this month, The Wall Street Journal reported Disney is said to be expanding its search for Mr. Iger's successor beyond the company's corporate suite.
Disney is reportedly considering multiple internal candidates to potentially replace Iger, but it is also using the services of a search firm to create a list of external candidates for the position. I requested it.
The board has selected four internal candidates to replace Iger: Disney Entertainment Co-Chairmen Dana Walden and Alan Bergman, ESPN Chairman Jimmy Pitaro, and Parks and Experiences Director Josh D'Amaro. has been evaluated.
One possible outside successor is Electronic Arts CEO Andrew Wilson, a name that has consistently surfaced in recent years.
Disney said it aims to name a successor by early 2026. Former Morgan Stanley CEO James Gorman was named chairman of the board last month.
