Filing Reveals That Disney Awarded Bob Chapek’s Son a Half-a-Million Dollar Bonus

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bob chapek onstage

Credit: Disney

According to a proxy filing with the SEC, the former Disney CEO’s son received a large bonus in 2021.

chapek-in-front-of-storm-troopers
Credit: Disney

Related: Disney Dismantles Bob Chapek’s Legacy in One Day, More Coming Soon?

As many Disney fans are aware of by now, The Walt Disney Company parted ways with CEO Bob Chapek late last year, and former CEO Bob Iger is back. Disney made a shocking late-Sunday night announcement in November of 2022 that Bob Chapek had stepped down from the position of Chief Executive Officer and that Bob Iger, who has spent more than four decades with the company– including 15 years as its CEO– had agreed to serve for the next two years in the position.

The filing, which was released in 2022, revealed that while Bob Chapek was running The Walt Disney Company, showed that he found a way to help his son out financially for his services to the company. The filing specifically states:

Mr. Chapek’s son, Brian Chapek (“Mr. B. Chapek”), was previously employed at Marvel Studios as Director, Production & Development throughout fiscal 2020. In December 2021, Mr. B. Chapek received a bonus of $525,000, to which he was entitled as a result of his previous production services rendered as an employee of Marvel Studios.

The filing goes further into detail by releasing the following statement:

Beginning in fiscal 2021, MVL Productions LLC, a subsidiary of the Company, contracted with a company wholly owned by Mr. B. Chapek, for Mr. B. Chapek’s exclusive services for a three-year period. The contract provides for Mr. B. Chapek to receive an annual base payment of $322,000 in fiscal 2021, $342,000 in fiscal 2022 and $367,000 in fiscal 2023. These amounts are inclusive of a payment in lieu of benefits. Additionally, Mr. B. Chapek will receive a $200,000 fee for each film on which he serves as lead producer and an additional bonus calculated by a predetermined formula based on the worldwide box office of films on which he works, consistent with a range and structure typical of producer deals at Walt Disney Studios. For fiscal 2021, Mr. B. Chapek received his $322,000 base payment plus $160,000, 80% of his producer fee, with the remaining 20% to be paid in fiscal 2022. This relationship was reviewed and approved in fiscal 2021 by the Governance and Nominating Committee under the Related Person Transaction Approval Policy.

Bob Chapek
Credit: Alexander Wells

Related: Disney Stock Soars as Company Defends Bob Iger After Activist Slams Management

As The Walt Disney Company prepares for a nasty boardroom battle with activist investor Nelson Peltz after the company opposed his efforts to join the board, moves like this are apparent conflicts of interest and are unhelpful for Disney’s case that everything they are doing is suitable for its shareholders. One of Trian’s biggest complaints about Disney and Bob Iger is that the company has lately experienced “poor corporate governance,” which resulted in “failed succession planning” and “over-the-top compensation practices.”

Compensation practices like this will undoubtedly be an item that Peltz and his team will point to in their case to join the board of directors.

Do you think it was fair for Bob Chapek’s son to receive such a large bonus in 2021?

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