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Credit: DisneyAfter Disney recently opted to renew the current CEO’s contract, we can now see he is also set to get a big bonus.
Related: Disney’s Galactic Starcruiser Evacuated, Guests Stuck Outside
Disney opted to renew Chapek’s contract just a few weeks ago, surprising some. While the Disney Park community has been skeptical of Bob Chapek since the get-go, with new additions like Genie+ not helping, his takeover couldn’t have come at a worse time. Taking the reigns from former CEO Bob Iger in early 2020, folks could’ve settled and given Chapek the benefit of the doubt, after all, running one of the largest corporations in the entire world with a pandemic breaking out is no easy task.
However, Chapek has also served as the company’s CEO during some of its most profitable times, at least in the Parks division. Upon looking at the details of his new contract, as reported on IndieWire.com, Chapek is set to receive a heft sum of money each year thanks to his recently-renewed contract. An excerpt from the story reads:
On June 28, 2022, the Board of Directors of The Walt Disney Company (the “Company”) and Robert A. Chapek, the Company’s Chief Executive Officer, agreed to extend the term of Mr. Chapek’s employment agreement with the Company to three years, beginning from July 1, 2022.
The employment agreement will be amended to provide that Mr. Chapek will be granted a long-term incentive award having a target value of not less than $20 million annually. The proportion of his long-term incentive award comprised of performance-based restricted stock units will be increased to 60%. These awards do not guarantee Mr. Chapek any minimum amount of compensation.
The actual amounts payable to Mr. Chapek in respect of such opportunities will be determined based on the extent to which any performance conditions and/or service conditions applicable to such awards are satisfied and on the value of the Company’s stock. Accordingly, Mr. Chapek may receive compensation in respect of any such award that is greater or less than the stated target value, depending on whether, and to what extent, the applicable performance and other conditions are satisfied, and on the value of the Company’s stock. No agreement has been made to amend any other terms of Mr. Chapek’s existing employment agreement, including his base salary.
Since taking over, Chapek has overseen a lot of major projects at the Disney Parks as well as the Walt Disney Company. Disney’s streaming service, Disney+, has been a big hit. Disney’s Galactic Starcruiser at Hollywood Studios in Orlando has also been a big hit with certain Guests despite the initial negative reception.
In the past few months, however, The Walt Disney Company has seen record lows on the stock market, indicating that the pandemic and/or the multiple controversies have affected the company and consumers. Chapek also recently fired Peter Rice, a top executive from the company in a move that shocked the company and media at large.
Despite all of this, Disney Chairman Susan Arnold claimed that Chapek had the board’s backing earlier this month, complimenting his “leadership and vision for the company’s future.”
What do you think of Bob Chapek?