Disney CEO Bob Chapek is securing a new long-term deal

The Walt Disney Company reports to Bob Chapek.

The CEO, who replaced the popular Bob Iger just a month before a new coronavirus pandemic hit the world (and, of course, nearly every line of Disney business), has agreed to a new long-term contract. going. Giant.

Disney’s board of directors on Tuesday announced the new contract extension, saying the decision was “unanimous”. The new contract begins July 1 and runs through 2025. The board previously said Chapek “and his leadership team have the support and trust of the board” following Chapek’s decision to fire and detain Peter Rice, director of entertainment. Dana Walden as main content.

“The Disney pandemic has hit hard, but under Bob, our businesses, from parks to streaming, have not only weathered the storm, but also found themselves in a strong position,” said Susan Arnold, chairman of the board. In the statement. “At this pivotal 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 critical to achieving that goal. Bobby is the right leader at the right time for the Walt Disney Company and the board has complete confidence in him and his leadership team.

“Leadership of this great company is a lifelong honor and I am grateful for the board’s support,” Chapek added. “I started at Disney nearly 30 years ago and today I have the privilege of leading one of the largest and most dynamic companies in the world that will bring joy to millions of people around the world. I enjoy working with amazing storytellers, staff and actors who do magic every day.

Chapek’s future at the company was in doubt, his contract expired in early 2023 and the window will close to renew or start a successor. Tuesday’s board decision left little doubt that it was in line with its vision for the company, adding that Chapek “set Disney on a path to lead the company’s entertainment industry into the next century, with a strong focus on brilliance.” of the narrative”. ”, Innovation and Public”.

Chapek’s $2.5 million base salary will remain unchanged under the new deal, however, as his annual grant of long-term incentive stock increases from $15 million to $20 million, 60% of that grant will be performance-based RSUs.

Iger remained with the company even after resigning as CEO, remaining on its board and serving as CEO. Since Iger officially resigned late last year, Chapek has taken a more proactive approach to the company, taking on several high-profile positions held by close aides to Iger and establishing new “strategic pillars” for the company in a memo. Employees.

But Chapek’s government also had its share of uproar. The company’s response to Florida’s so-called “Don’t Say Gay” bill sparked outrage among employees, with Republican politicians and conservative media rioting as the company tolerated opposition. Florida has finally supported the seizure of Disney’s special tax district, although the end result of this project is still unclear.

And Chapek’s new organizational structure, which aimed to move closer to the company’s mainstream, wrongly stopped some creative executives, shifted P&L lines so the company hadn’t worked before, and heavily influenced Karim Daniel, Chapek’s senior vice president. In the company.

But the contract extension also keeps Chapek in charge, which will be a crucial period for Disney+, the company’s big streaming gamble. The company aims to reach 230-260 million subscribers to the Disney+ streaming service by September 2024 (although a cricket deal in India questions that goal) and with Chapek’s new deal he will be able to manage those expectations and likely release new ones. Anticipated goals.