Disney CEO Bob Iger has been abruptly replaced as the head of the iconic company.

The company made the surprise announcement on Tuesday after the close of trading.

Iger, a former weatherman who had already delayed his retirement, said he would be stepping down from his $47.5million-a-year job as CEO and was appointed executive chairman, effective immediately.

Robert Chapek, previously Disney's chairman of parks, experiences and products will take over as CEO.

'I will continue to conduct the company's creative endeavors while also leading the board,' Iger said on a conference call with reporters and analysts, adding: 'I could not do that if I had to run the company on a day to day basis.'

He said the move 'was not accelerated for any particular reason', adding: 'Other than I felt the need was now to make this change.'

Disney shares, already down some 13 percent this month, dropped as much as 2.6 percent in after-hours trading on the surprise news.

Iger's latest contract had been extended through 2021, and his departure came as a surprise to those who follow the company. 'Did not see this coming -- Wowza,' tweeted LightShed media analyst Rich Greenfield.

Disney CEO Bob Iger has been abruptly replaced as the head of the iconic company

Robert Chapek, previously Disney's chairman of amusement parks, will take over as CEO

Disney shares, already down some 13 percent this month, dropped as much as 2.6 percent in after-hours trading on the surprise news

Iger, 69, had been CEO of Disney since 2005, and oversaw the acquisitions of Marvel, Pixar and LucasFilms, three massive and ultimately highly lucrative purchases for the company.

Last year, the top five movies in U.S. and Canada theaters were all Disney movies, including two from Marvel and one from Pixar.

With the December 20 release of the latest 'Star Wars' movie, Disney had seven movies that each sold at least $1 billion in tickets worldwide last year.

Iger's most recent coup was orchestrating a $71 billion acquisition of Fox's entertainment assets and launching the Disney Plus streaming service in November. That service gained nearly 29 million paid subscribers in less than three months.

He said it was an 'optimal time' for him to step down following Disney's acquisition of Fox's entertainment assets and the launch of Disney Plus.

'I felt that with the asset base in place and our strategy essentially deployed that I should be spending as much time possible on essentially the creative side of our company,' Iger said.

Disney said Tuesday that Iger, right, would step down as CEO. He will become executive chairman while Robert Chapeck, left, will be the new CEO. The men are pictured Tuesday

Iger has been famously involved in the creative side of Disney endeavors, reportedly watching rough cuts of the Disney Plus series The Mandalorian three times through to give feedback.

Chapek, 60, is only the seventh CEO in Disney history. Chapek had been head of the parks, experiences and products division since it was created in 2018.

'It's a tremendous honor for me to assume the role of CEO of the Walt Disney company,' Chapek said on the conference call.

BOB IGER Born: Oceanside, New York Age: 69 Salary: $47.5 million, down from second-highest paid CEO in 2018, earning $65.6 million Education: Ithaca College Experience: Former weatherman, joined broadcaster ABC in 1974. Successes: Iger steered Disney through successful acquisitions of Lucasfilms, Marvel, Pixar and other brands that became big moneymakers for Disney Controversy: Criticized for cancelling well-regarded but expensive shows such as 'Twin Peaks,' 'China Beach,' and 'thirtysomething.' Family: First marriage to Kathleen Susan; former couple have two daughters. Second marriage to Willow Bay; the couple have two sons Advertisement

ROBERT CHAPEK Born: Hammond, Indiana Age: 60 Salary: New base salary of $2,500,000 Education: Indiana University, Michigan State University Experience: Head of the parks, experiences and products division since it was created in 2018. Before that he was chairman of Walt Disney Parks and Resorts since 2015. And before that, he was president of the Disney Consumer Products segment from 2011 to 2015 Prior to joining Disney, Chapek worked in brand management at H.J. Heinz Company, and in advertising at J. Walter Thompson Family: Visited Disneyland every year as a child, son of a World War II veteran and a working mother Advertisement

Chapek, 60, is only the seventh CEO in Disney history. Chapek had been head of the parks, experiences and products division since it was created in 2018.

Robert Chapek, previously Disney's chairman of parks, experiences and products will take over as CEO

Before that he was chairman of Walt Disney Parks and Resorts since 2015. Before that, he was president of the Disney Consumer Products segment from 2011 to 2015.

Chapek's new base salary as CEO will be $2,500,000. He will also be granted a long-term stock incentive award having a target value of not less than $15 million, and annual bonuses targeted at three times his base salary, according to filings.

HOW BOB IGER HELPED DISNEY ENTER THE STREAMING WARS Bob Iger's most recent coup was orchestrating a $71 billion acquisition of Fox's entertainment assets in March and launching the Disney Plus streaming service in November. Disney's mix of Marvel and Star Wars movies and shows, classic animated films and new series appears to be a hit for viewers. The service gained nearly 29 million paid subscribers in less than three months. In a statement, Iger said it was the 'optimal time' for a transition. In April the company said it plans to reach 60 million to 90 million Disney+ subscribers globally by 2024. Disney has invested billions in its streaming service, which costs $7 a month or $70 a year after a 7-day free trial. Customers of some Verizon wireless and home-internet plans were offered a year free. Netflix - which began its streaming service in 2010 - has over 60million subscribers in the US alone, and 148million paid subscriptions worldwide. Advertisement

Chapeck's CEO contract with Disney extends three years, through February 2023.

Susan Arnold, the independent lead director of the Disney board said succession planning had been ongoing for several years.

Pivotal Research Group analyst Jeffrey Wlodarczak said Iger had implied he would stay until his contract ended in 2021.

'On the other hand, they just successfully closed the Fox deal and had an unquestionably successful launch of Disney Plus so maybe he felt earlier was better to hand off the reins,' he said.

Disney is facing challenges to its traditional media business as cord-cutting picks up, meaning less fees from cable and satellite companies to carry Disney networks such as ABC, ESPN and Freeform. Disney's own streaming services require the company to forgo money in licensing revenue, although the company is betting that money from subscriptions will eventually make up for that.

In the short term, Disney parks in Hong Kong and Shanghai, China, remain closed because of the coronavirus outbreak.

Chapek said that while he has not led television networks or streaming services, his background in consumer-oriented businesses should help. Chapek and Iger both stressed that Disney would continue to follow the direction it had been.

In a statement Chapek said: 'I am incredibly honored and humbled to assume the role of CEO of what I truly believe is the greatest company in the world, and to lead our exceptionally talented and dedicated cast members and employees.

'Bob Iger has built Disney into the most admired and successful media and entertainment company, and I have been lucky to enjoy a front-row seat as a member of his leadership team.'

End of an era: Iger's triumphant 15 years as Disney CEO

Iger became chief executive of Disney in 2005 after a shareholder revolt by Roy E. Disney led to the ouster of longtime chief Michael Eisner.

In the years that followed, Iger steered Disney through successful acquisitions of Lucasfilms, Marvel, Pixar and other brands that became big moneymakers for Disney.

Iger, a former weatherman, joined broadcaster ABC in 1974, 22 years before Disney bought the network.

At ABC, Iger developed such successful programs as 'Home Improvement,' 'The Drew Carey Show,' and 'America´s Funniest Home Videos' and was instrumental in launching the quiz show 'Who Wants to Be a Millionaire.'

Bob Iger, pictured left with then California Governor Arnold Schwarzenegger, Mickey Mouse, Walt Disney's daughter Diane Disney Miller (1933-2013), broadcast legend Art Linkletter (died May 2010), former chief executive officer of the Walt Disney Company Michael D. Eisner and Minnie Mouse at the 50th anniversary of Disneyland in Anaheim, California July 17, 2005

Iger (second from right) is seen with (from left) 'Star Wars' film franchise creator George Lucas, cast members Billy Dee Williams and Mark Hamill and Harrison Ford stand at the the new Star Wars: Galaxy's Edge attraction at Disneyland Park last May

He was also criticized for cancelling well-regarded but expensive shows such as 'Twin Peaks,' 'China Beach,' and 'thirtysomething.'

Iger was the second-highest paid CEO in 2018, as calculated by The Associated Press and Equilar, an executive data firm.

He earned $65.6 million thanks to a stock package included as an incentive to stay in the job past his retirement. The top earner was Discovery's David Zaslav who earned $129.5 million. His salary dropped to $47.5 million.

Iger told Vogue in 2018 that he had started seriously exploring a run for president because he is 'horrified at the state of politics in America today,' but the Fox deal stopped his plans. Oprah Winfrey told Vogue that she 'really, really pushed him to run.'

Since Iger became CEO, Disney’s stock price has risen fivefold.

Robert Iger poses for a photo with from left, Rabbit, Winnie the Pooh, Eeyore and Tigger during a ceremony Tuesday, April 11, 2006, honoring Pooh's 80th anniversary with a star on the Hollywood Walk of Fame in Los Angele