Bob Chapek, Disney
Jeff Gritchen | MediaNews Group | Orange County Registry via Getty Images
Disney has extended the contract of CEO Bob Chapek for three years, the company announced on Tuesday.
Chapek’s contract expired in February next year, three years after he unexpectedly took over the reins of Bob Iger. The board, which met Tuesday in Florida, voted unanimously to extend Chapek’s term until July 2025.
“Disney had a hard hand in the pandemic, but with Bob at the helm, our businesses, from parks to streaming, not only weathered the storm, but emerged in a position of strength,” said Susan Arnold. , chairwoman of the board. in a statement Tuesday.
He added: “At this important time of growth and transformation, the Board is committed to keeping Disney on the path to success that it continues today, and Bob’s leadership is key to achieving that goal. Bob is the right leader at the moment. suitable for The Walt Disney Company and the Board has full confidence in him and his leadership team. “
Chapek has experienced his share of difficulties during his brief tenure so far. Shares of Disney, which remained unchanged in off-hours operations, were down about 38% this year at the close on Tuesday.
Chapek was also at the center of a dispute between Disney and Florida Gov. Ron DeSantis over comments made about the state’s HB 1557, dubbed the “Don’t Say Gay” bill. The fight led DeSantis to rally Republican lawmakers to repeal Disney’s special Reedy Creek district, which he has maintained for decades.
Earlier this month, Chapek headlined to fire Peter Rice, Disney’s top television content executive. The board said at the time that Chapek had his full support.
The time for Disney’s transition from Iger to Chapek came a few weeks before the coronavirus pandemic forced the closure of various facets of the entertainment industry, including movie theaters and theme parks.
With no revenue from these divisions, Chapek gathered around Disney + ’s new streaming service. The success of shows like “The Mandalorian” had made the platform popular with consumers, and Chapek stood firm on the company’s goal of reaching between 230 and 260 million Disney + subscribers by 2024.
At the end of Disney’s second fiscal quarter, the service had more than 137.7 million subscribers.
Chapek, 63, has worked for the Walt Disney Company for nearly 30 years and is its seventh CEO. Previously, he was the president of Disney’s parks, experiences and products division.
CNBC’s Alex Sherman contributed to this report.