Ex-Disney CEO Bob Chapek will get $23 million as exit pay
Bob Chapek, the recently ousted former CEO of Walt Disney Co., would receive approximately 23 million dollars in exit perks in addition to his previous compensation. Bloomberg News determined the sum the business should pay to Bob Chapek based on the most recent regulatory filings. Bob Chapek is entitled to receive a wage for the whole length of his appointment in accordance with the agreement the company has with him, even if the company demotes him from the top position. Bob Chapek’s tenure as Walt Disney Co.’s CEO has recently been extended through the middle of 2025. The estimated pay between now and then comes to close to 6.5 million dollars.
Bob Chapek had a long career in the corporation, holding a number of positions before he joined Walt Disney Co. as marketing manager at the Buena Vista Home Entertainment division. Bob Chapek is entitled to a pension from the corporation because of his extensive career. According to documents submitted to regulators by the corporation as of October 2021, he will receive a pension of around $17 million. In addition to receiving monetary rewards, Bob Chapek also holds a sizable number of Walt Disney Company shares (apart from stock awards). Even though the company’s stocks aren’t doing well right now, any growth in share value can raise the value of the former CEO’s stock holdings.
Various stock awards he has accumulated throughout the years are also due to him. Numerous of those stock awards have still not become part of his portfolio. Some of the stocks will remain in his name and continue to vest in him even if he is fired by the company for an unspecified reason. The valuation of the shares will determine how much those stocks are worth or how many shares he will receive as a stock award. Last but not least, Chapek has what is known as a “non-qualified deferred compensation plan,” which is comparable to a supersized 401(k) that many big businesses put up for high-earning employees. They can typically invest a portion of their income into a variety of equity and bond funds. Chapek had about $8.5 million in his plan about a year ago, though this amount has probably changed given the recent market volatility.
For a variety of reasons, the share value of Disney stocks has decreased by more than 40% during the past year. By reorganizing top management and the workforce, the company is attempting to win back Wall Street’s confidence. Robert Iger has officially been selected as the company’s CEO by Walt Disney Co. It is anticipated that Robert Iger, who served as the organization’s CEO for 15 years until 2020, will put the prescription company back on track.