by Ray Keating
News
DisneyBizJournal.com
June 28, 2022
The Walt Disney Company announced today that it has extended Bob Chapek’s contract as CEO for three years. The vote by the Disney board was unanimous.
Chapek’s contract was set to expire in February 2023. The new contract extends his CEO tenure to July 2025.
Chapek’s time in the C-Suite has been one of many challenges – namely, guiding the company through the pandemic – various recent controversies, and a period of expanding opportunity for the company via streaming.
Susan Arnold, Chairman of the Board, said, “Disney was dealt a tough hand by the pandemic, yet with Bob at the helm, our businesses—from parks to streaming—not only weathered the storm, but emerged in a position of strength. In this important time of growth and transformation, the Board is committed to keeping Disney on the successful path it is on today, and Bob’s leadership is key to achieving that goal. Bob is the right leader at the right time for The Walt Disney Company, and the Board has full confidence in him and his leadership team.”
According to the Hollywood Reporter, “Chapek’s $2.5 million base salary will remain unchanged in the new deal, however, his annual long-term incentive stock grant will be increased from $15 million to $20 million, with 60% of that grant being performance-based RSUs.” Restricted stock units (RSUs) are compensation in the form of company shares issued via a vesting plan and distributed on set dates after reaching performance goals.
The Disney board recently backed Chapek’s dismissal of Peter Rice as the head of the company’s television content.
Chapek stated, “Leading this great company is the honor of a lifetime, and I am grateful to the Board for their support. I started at Disney almost 30 years ago, and today have the privilege of leading one of the world’s greatest, most dynamic companies, bringing joy to millions around the world. I am thrilled to work alongside the incredible storytellers, employees, and cast members who make magic every day.”
Many Disney fans have been less than thrilled with Chapek, and various people have already taken to Twitter (no surprise there) to declare their outrage. In the meantime, stockholders are waiting to see if Disney’s stock price will rebound after declining by 45 percent over the past year – although part of that decline obviously ties into the larger economy. The stock offered no reaction to the Chapek announcement, closing at $96.52 today.
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the Pastor Stephen Grant novels and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.
The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?
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