According to Reuters, Walt Disney Company Chairman Bob Iger sold shares of the company worth $98.7 million, according to a regulatory filing late on Thursday. The amount of stocks sold totaled 550,570 shares of Disney’s common stock sold at an average price of $179.2 per share, and 13,266 shares at an average of $179.76 each. The entertainment company said the sale was part of Iger’s move to diversify his portfolio.
Why the sudden sale? Various sources weighed in on the ramifications of this massive sale.
Via Blog Mickey:
SEC filings recently revealed that former Disney CEO Bob Iger has sold off nearly $100 million USD’s worth of Disney stock. At over 550,000 shares sold off, this represented about half of Iger’s share in The Walt Disney Company in total. With all the drama over Iger’s stepping down in favor of Bob Chapek, this represents a pretty ballsy move on Iger’s part. Especially since Iger is due to leave Disney altogether on December 31, 2021. Someone had better grab some popcorn, because the drama will likely continue.
This massive sale of Disney stock is basically a vote of no confidence for Bob Chapek’s leadership from Bob Iger. While it’s not a complete vote of no confidence, selling off half of your stock in the company isn’t exactly a sign of confidence in the new management either. It’s not quite an open declaration of war on Bob Chapek, but it’s close. What changed within The Walt Disney Company for Iger to start selling off so much of his share in the stock? Is Chapek planning on doing something Iger fundamentally disagrees with? Is the whole stock-selling a protest on Iger’s part? Or is it something else altogether?
But it doesn’t seem so out of place, according to DisInsider’s Dempsey Pilot:
With Iger slated to retire at the end of the year, the move might seem shady, but according to The DisInsider’s legal correspondent Sean Nyberg it’s fairly common. “When you get paid in stock as an executive, it starts to add up, so you tend to cash a lot of it out before leaving.”
With over 1 million shares in his possession prior to the sale, The Walt Disney Company confirmed that the move was made in an attempt to diversify his stock portfolio.
Iger sold a total of 550, 570 shares. 537, 304 sold for an approximate average of $179.20 per share, while the remaining 13,266 were sold at an approximate average of $179.76 per share. All that, and he still has 500,000 shares in the company.
Iger previously acted as the company’s Chief Executive Offier (CEO), but stepped down earlier this year to focuses on some of the company’s remaining “creative endeavors” until his contract runs out. Bob Chapek now holds the office.
In his time as CEO, Iger became known as a master of acquisition, closing deals on Pixar, Marvel, Lucasfilm, and Fox for Disney.
Midnight’s Edge also took the time to explain what it means.
What do you think?