Bob Iger replaced Bob Chapek as Disney’s CEO back in November 2022, but Chapek didn’t leave the company with empty pockets.
Disney recently filed an SEC report that lays out the details of executives’ and Board members’ salaries. It includes Chapek’s compensation for 2022 and the value of his severance package.
According to the SEC report that Disney filed on January 17th, 2023, the Walt Disney company “exercised its right to involuntarily terminate Mr. Chapek’s employment without cause.” The company did so at the end of the fiscal year 2022, on November 20th. Iger was called upon to take back his former role as CEO — a change that many Disney fans supported.
The shift came as a surprise to some because the Board of Directors had voted unanimously to renew Chapek’s contract in June 2022. That extension would have lasted 3 years. However, Disney’s report states that the Board “continued to spend significant time discussing the leadership of the Company in the months that followed and determined that Mr. Chapek was no longer the right person to serve in the CEO role.”
For a variety of reasons (not the least of which was a disastrous Earnings Call towards the end of 2022), the Board felt that Iger was the better choice to lead Disney. However, Chapek did not leave empty-handed. The recent report shows that Chapek received a pay package of $24.18 million for his work in 2022 along with a severance package.
The severance package Chapek received is worth over $20 million, with about $6.5 million in remaining base salary and about $1 million as a pro-rated target bonus. He’ll receive almost $13 million in accelerated Disney stock. This package is dependent on Chapek successfully completing “all of the terms of his post-employment consulting agreement.”
Want to learn more about what’s going on with the Disney CEO? Check out these posts!
- Disney CEO Bob Iger Announces New Employee Rules
- 4 Important Secrets You Didn’t Know About the Iger-Chapek Conflict
- Will Bob Iger Reverse Bob Chapek’s Decisions?
- Bob Iger’s Mistakes “Would Have Killed Any Other CEO.”
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