Bob Iger will hold the positions of chairman, president and chief executive officer through Mar 31, 2015, when a new CEO will be named. He will serve as executive CEO for 15 months through Jun 30, 2016. His current contract was set to expire on Jan 31, 2013.

Under the deal Iger’s annual base salary will be $2.5m. He does not earn any up-front equity award in connection with the new agreement. His annual bonus award will be linked to the company’s performance. He will also be entitled to an annual long-term equity incentive award of options and restricted stock units.

“For more than six years, Bob Iger has proven he has… ability at the highest level,” Pepper said. “The board is delighted that the company has been able to secure the longer-term continuation of Bob’s unique blend of experience and leadership skills.”

“No CEO could have a better counsellor than John,” Iger said. “His impeccable integrity, vast experience, and knowledge and appreciation of Disney have been invaluable. I want to thank him for his many contributions, and his support of our people and our strategy including two of the company’s most significant acquisitions in recent years – Pixar and Marvel.”