The Walt Disney Co. stays with Bob Chapek.
The CEO, who took over from much-loved Bob Iger just a month before the new coronavirus pandemic disrupted the world (and, of course, almost every Disney business line), has agreed to a new long-term contract to continue leading the entertainment. giant.
Disney’s board of directors on Tuesday announced the new extension of the three-year contract, saying the decision was “unanimous.” The new contract begins on July 1 and lasts until 2025. The board had previously said that Chapek “and his leadership team have the support and trust of the Board,” following Chapek’s decision to dismiss the general head of entertainment Peter Rice and elevate him. Dana Walden in the lead content role.
“The pandemic had a hard hand at Disney, but with Bob at the helm, our businesses, from parks to streaming, not only weathered the storm, but emerged in a position of strength,” Susan Arnold said. , chairwoman of the board. in a statement. “In 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 right time to The Walt Disney Company, and the Board have full confidence in him and his leadership team. “
“Leading this great company is the honor of a lifetime, and I am grateful to the Board for their support,” Chapek added. “I started at Disney almost 30 years ago, and today I have the privilege of leading one of the largest and most dynamic companies in the world, bringing joy to millions of people around the world. I am thrilled to work alongside the amazing narrators, employees and cast members who do magic every day. ”
Chapek’s future in the company had been questioned, with his contract expiring in early 2023 and a window to renew or start looking for a successor closure. Tuesday’s board decision left little doubt that he was committed to his vision for the company, adding in his announcement that Chapek “has put Disney on the path to leading the entertainment industry to next century of the company, with a great focus on the excellence of storytelling., innovation and audiences “.
Chapek’s $ 2.5 million base salary will remain unchanged under the new agreement, however, its annual long-term incentive action grant will increase from $ 15 million to $ 20 million, with the 60% of this grant in performance-based MSW.
Iger remained in the company even after stepping aside as CEO, remaining on its board and serving as executive chairman. Once Iger officially left late last year, Chapek took a more active approach to the company, holding a number of senior positions held by Iger’s close advisers and outlining new “strategic pillars” for the company on a staff note.
But Chapek’s tenure has also had its share of turmoil. The company’s response (the lack of one) to Florida’s so-called “Don’t Say Gay” bill outraged employees, and Republican politicians and conservative media rallied when the company went oppose their opposition. Eventually, Florida voted to remove Disney from its special tax district, although the end result of this bill is still unclear.
And Chapek’s new organizational structure, which aimed to incline the company into streaming, rubbed some creative executives the wrong way, changing P&L lines in a way the company didn’t operate before and giving Kareem Daniel, a top deputy of Chapek, a disproportionate influence. in the company.
But the extension of the contract also keeps Chapek at the helm during what will be a pivotal period for Disney +, the company’s big streaming bet. The company aims to reach between 230 and 260 million subscribers to its Disney + streaming service by September 2024 (although a cricket deal in India calls that goal into question) and Chapek’s new deal it will see him manage these expectations and presumably set new goals in the future.