Ousted Disney CEO Bob Chapek is set to get a golden parachute worth more than $20 million.
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Disney says ousted CEO Bob Chapek is set to get a severance package worth more than $20 million.
He got $24.2 million total compensation in the 2022 fiscal year, including $280,000 for air travel.
Disney’s board decided that Chapek was “no longer the right person” and ended his employment without cause.
Ousted Disney CEO Bob Chapek is set to get a golden parachute worth more than $20 million, according to proxy filings by the entertainment giant reviewed by Insider. This is on top of the $24.2 million he got in total compensation in the company’s 2022 fiscal year.
Disney said on Tuesday that Chapek would receive $6.5 million in remaining base salary through to the scheduled end date of his employment agreement and just over $1 million equivalent to a pro-rated target bonus for the 2023 fiscal year.
In addition, the former CEO is set to get around $12.7 million in accelerated Disney stock units.
The severance package is dependent on Chapek completing the terms of his post-employment consulting agreement and not violating his employment agreement, Disney said in the proxy statement.
Chapek, who at been at the helm of the company for close to three years, was ousted in November. Bob Iger, who had served as CEO for around 15 years prior to Chapek taking control, was reappointed to the role for a two-year term. One of his main tasks is finding a successor.
Disney said that in the 2022 fiscal year, which ended on October 1, Chapek earned a total annual compensation of $24.2 million, including the company’s contribution to health insurance premiums.
This included a $2.5 million salary, $10.8 million in stock awards, $3.8 million in option awards, and $6.8 million in non-equity incentive plan compensation. Chapek was also given just over $280,000 for personal air travel, Disney said.
Disney said that Chapek’s total annual compensation was 446 times higher than that of the median employee pay at Disney — $54,256.
Chapek’s ousting followed a tumultuous few months at the company including a $1.5 billion quarterly loss in its streaming business, backlash over price increases at its theme parks, and a staff walkout and intense public criticism over Chapek’s response to Florida’s “Don’t Say Gay” law.
Chapek also had to lead the company throughout the pandemic, including lockdown-mandated park closures, huge strains on the movie industry, and its corporate staff’s shift to remote working.
The board determined that Chapek was “no longer the right person to serve in the CEO role” and ultimately terminated his employment without cause, the proxy filing says.
Bob Iger could walk away with $28 million in total annual compensation
After stepping down as CEO in early 2020, Iger had assumed the role of executive chairman, from which he retired on December 31, 2021.
Following his retirement, Iger was set to receive $500,000 each quarter over a five-year period as a consultant to Disney. The company said in Tuesday’s proxy statement that he received $1.5 million in this role in the 2022 fiscal year, but that this arrangement was paused following his return as CEO and would be resumed once he leaves Disney again.
In his role as CEO, Iger’s annual base salary is $1 million and he is eligible for an annual bonus worth up to double that, Disney said in the filing. He also has an annual long-term incentive grant target of $25 million, taking his total possible compensation to $28 million.
In total, Iger got $15 million in total compensation in the 2022 fiscal year, including a pro-rated bonus of $4.4 million, per the filing. He earned $45.9 million in total compensation in 2021 and $21 million in 2020.