Disney (DIS) has officially extended Bob Iger's CEO contract by another two years.

Disney's Board of Directors announced late Wednesday afternoon Iger has agreed to continue to serve as Disney's CEO through December 31, 2026.

In a filing with the SEC, Disney said Iger's new contract will include an annual bonus target for the executive equal to 500% of his annual salary. Disney stock is down roughly 2% since Iger's return.

"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," Disney chairman Mark Parker said in a news release.

"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," Parker added.

Iger, who stepped back into the CEO position in November, has remained hyper-focused on profitability as investors shift focus away from subscriber growth and put more emphasis on margins.

The executive has worked to establish new revenue streams like a recently launched ad-supported tier for its streaming service, Disney+. The company has also announced price increases on the service to help pare losses and lift metrics like average revenue per user, or ARPU. Iger reaffirmed the company's outlook of reaching streaming profitability by 2024.

Disney is also working to slash $5.5 billion in costs out of the business, including $3 billion in content costs. The company announced an effort to cut 7,000 jobs in February.

Disney went through its first round of layoffs at the end of March. Its second and largest round occurred in late April, with a third round taking place in May.

Iger said in his own statement Wednesday, "There is more to accomplish before this transformative work is complete."

"Because I want to ensure Disney is strongly positioned when my successor takes the helm, I have agreed to the Board’s request to remain CEO for an additional two years," Iger said. "The importance of the succession process cannot be overstated, and as the Board continues to evaluate a highly qualified slate of internal and external candidates, I remain intensely focused on a successful transition."