“Time and again, Bob has shown an unparalleled ability to successfully transform Disney to drive future growth and financial returns, earning him a reputation as one of the world’s best CEOs,” said Mark Park, chairman of The Walt Disney Co.

“Bob has once again set Disney on the right strategic path for ongoing value creation, and to ensure the successful completion of this transformation while also allowing ample time to position a new CEO for long-term success, the board determined it is in the best interest of shareholders to extend his tenure, and he has agreed to our request to remain chief executive officer through the end of 2026,” Park said.

Iger, 71, who retired from Disney in 2021, returned as the company’s executive chairman in November following a mixed fourth quarter for the Disney+ subscription service under former CEO Bob Chapek.

Since his return, Iger has taken on a broad restructuring of Disney and laid off 7,000 employees, which he addressed in a memo to the company Wednesday.

“We’ve made important and sometimes difficult decisions to address some existing structural and efficiency issues, and I’m proud of what we’ve been able to achieve together,” Iger wrote in the memo, according to CNBC.

“But there is more to accomplish before this transformative work is complete, and I am committed to seeing this through,” Iger added, with an eye to his eventual successor. “To that end, I’m writing to share that I have agreed to the Disney Board’s request to remain CEO for an additional two years — through the end of 2026.”

“It is also important to me that Disney is strongly positioned when my successor takes the helm. As the board continues to evaluate a highly qualified slate of internal and external candidates, I remain intensely focused on a successful CEO transition.”

Following news of Iger’s contract extension, Disney shares were flat Wednesday at close and were up slightly in after hours trading.