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Months of Talks End in New Contract for ABC's President

LOS ANGELES — The Walt Disney Company signed the president of ABC Entertainment, Stephen McPherson, to a new contract, signaling confidence in the maverick executive’s ability to deliver new hits to succeed workhorses like “Grey’s Anatomy.”

The agreement, which was completed Thursday after months of negotiations, locks up one of Hollywood’s most highly regarded creative developers for an unspecified number of years. “His ability to identify talent and develop successful shows is second to none,” said Anne Sweeney, co-chairman of Disney Media Networks and Mr. McPherson’s direct boss, in a statement.

A spokeswoman for Mr. McPherson said he was not immediately available to comment. In a statement, he said, “I feel really fortunate to get the opportunity to continue on with the phenomenal team.”

The renewal of his contract had not been guaranteed. Mr. McPherson, known for his competitive nature and frank discourse, has at times had a testy relationship with colleagues at Disney, where executives are expected to stay on message and get alonge with corporate siblings.

Mr. McPherson, 42, had made it known that he was interested in taking on more responsibility, and it was unclear whether he would stay without gaining oversight of additional turf. The details of his new contract are unknown, but it does not include oversight of the ABC Television Studio, according to a person with knowledge of the terms but who was not authorized to speak publicly about the matter.

Disney is relying on Mr. McPherson to lead ABC through a thicket of industry problems. Advertisers, already moving dollars from television to the Internet, are coming under additional spending pressure due to the lagging economy. Viewership continues to tumble. And the television industry, still hurting from the recent writers strike, now faces the possibility of an actors strike over the summer.

Mr. McPherson has played a direct or indirect role in shaping some of the biggest hits on television in recent years, including “Grey’s Anatomy” and “Dancing with the Stars.” The network has not delivered any home runs lately but has managed to score more singles and doubles than most of its rivals.

Since Mr. McPherson took over the network, ABC has risen to second place from last among the four major broadcast networks, as measured by viewership among people age 18 to 49, the demographic most advertisers pay a premium to reach. The rise is particularly impressive because it was accomplished despite the departure of “Monday Night Football” to ESPN.