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Act Daily News
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Ousted Disney chief government Bob Chapek is ready to obtain a hefty paycheck following his exit.
The Walt Disney Company mentioned the previous CEO, who took over in February 2020 after longtime CEO Bob Iger retired, is eligible to take residence a severance pay bundle price roughly $20 million, based on a regulatory submitting Tuesday. That’s along with the $24 million he made final yr — his $2.5 million base wage plus thousands and thousands in inventory choices and awards. That’s down from the $32.5 million he made in 2021.
Chapek abruptly exited the corporate in November after a busy two-year stint marked by Covid-19 shutdowns, a PR debacle associated to Florida’s “Don’t Say Gay” invoice and a major slowdown in demand for streaming companies. He was changed by his predecessor, Iger.
The proxy submitting mentioned that the board decided that Chapek “was no longer the right person to serve in the CEO role,” regardless that it had voted to increase Chapek’s tenure for 3 years in June 2022.
“The significant developments and change in the broader macroeconomic environment over this period informed how the board viewed the appropriate leader in light of the rapidly evolving industry and market dynamics,” the submitting mentioned.
Disney shares, which had been buying and selling at about $170 in January 2022, have fallen to about $100 a share.
Iger has returned to Disney at a tumultuous time. Its streaming business misplaced $1.5 billion within the fourth quarter, and Disney’s media networks are struggling as cord-cutting accelerates and once-lucrative shops like ESPN lose family attain.
Dan Loeb, the activist investor and Third Point CEO, made headlines in August when he recommended “a strong case can be made that the ESPN business should be spun off to shareholders with an appropriate debt load.”
A Wells Fargo analyst additionally known as on Disney to ditch ESPN in December.
Disney
(DIS) beforehand revealed that Iger earned a $1 million base wage. However, that compensation comes with an annual bonus of as much as $1 million, in addition to an annual incentive-based award with a goal worth of $25 million. That implies that Iger has the potential of pulling in round $27 million.
Last week, Disney named Nike government chairman Mark Parker as its new board chair, changing longtime director Susan Arnold, whose time period restrict is expiring.