Disney CEO Bob Chapek gets a new long-term contract

Disney CEO Bob Chapek signed a new long-term contract when the board meets this week. The executives unanimously supported the modification of his current contract, which expires in February 2023, with a new three-year contract starting July 1.

“The Disney pandemic has hit hard, but at Bob’s helm, our business, from parks to streaming, has not only weathered the storm, but has also found itself in a position of strength,” said Susan Arnold, president of the Advice. “In this pivotal time of growth and transformation, the Board is committed to keeping Disney on the path to success it is on today, and Bob’s leadership is key to achieving this. “Bobby is the right leader for The Walt Disney Company at the right time and the board trusts him and his leadership team.”

Chapek was ready for a rocky ride, and some wondered if he had a long-term future at the top of the media giant. Board Chair Susan Arnold supported Chapek following executive changes earlier this month that included the firing of content manager Peter Rice.

“Leading this great company is a lifelong honor and I am grateful for the support of the board,” said Chapek. “I started at Disney nearly 30 years ago and today I have the privilege of being one of the greatest in the world. , The most dynamic companies that bring joy to millions of people around the world. I enjoy working with amazing storytellers, staff and actors who create magic every day.

Chapek, 63, was named CEO in February 2020 when Covid blocked the global economy. He took over from Bob Iger, which was a difficult transition as the former boss stayed until he left to oversee Disney’s creative business.

To become CEO, Chapek led Disney Parks, Experiences and Products. He led Disney Consumer Products and served as president of distribution for Walt Disney Studios and president of Walt Disney Studios Home Entertainment.

Chapek’s rise to the top spot came as a surprise to Hollywood and Wall Street; He wasn’t well known either. Since then, he has earned several reputations, including a high-profile legal altercation with Scarlett Johansson and a dispute over the Florida parenting education bill (called “Don’t Say Gay”). Disney became the stock exchange of Florida Governor Ron Desantis and lost a special economic zone in the state after Chapek spoke at the annual meeting in March, but not until many employees were fired for their public silence.

The contract announced today solves, at least, the question of his work at Disney.

Disney shares have fluctuated with other media shares, but more than a few. In late trading, it was up 0.56% after news of a new contract hit $ 96.46, surpassing a 52-week high of around $ 188 last fall and slightly above a low of $ 92. .

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In filing with the SEC, the company said the new contract requires Chapek to receive a long-term incentive award with a target value of “at least $ 20 million per year.” Additionally, your share of long-term incentives, which consist of performance-based limited stock units, will increase to 60%. (He noted that rewards do not guarantee any minimum compensation, as they are based on achieving a certain metric or stock price.)

The remaining details of his new contract, including base salary, are still being worked on.