With Disney CEO Bob Chapek’s contract extension comes a pay raise. Check out how big this raise is and tell us what you think.
When Bob Iger retired in February 2020, Bob Chapek took his place as CEO of The Walt Disney Company. He took charge right before the parks closed in March of 2020 due to the pandemic. Chapek has been in charge for over two years, overseeing the parks, entertainment, and more.
Over the past year, in particular, many Disney fans have wondered if Chapek’s days are numbered at the Walt Disney Company. Last week, the Disney Board voted unanimously to extend Bob Chapek’s contract for three more years. Check out the full details and Chapek’s statement HERE.
For the next three years (until July 1, 2025), Bob Chapek will remain Disney’s CEO. Today, we learned that this new extension to his contract also came with a sizeable bonus.
According to an SEC filing, we see new details of Chapek’s earnings under this newly extended contract. Chapek had an original base salary of $2.5 million per year. This salary remains the same. A rather large change did come for his annual bonus. Prior to the contract extension, Chapek could earn a $15 million bonus annually based upon a long-term incentive award.
This bonus has now been raised from $15 million annually to $20 million. The SEC filing states, “The actual amounts payable to Mr. Chapek in respect of such opportunities will be determined based on the extent to which any performance conditions and/or service conditions applicable to such awards are satisfied and on the value of the Company’s stock.”
“Accordingly, Mr. Chapek may receive compensation in respect of any such award that is greater or less than the stated target value, depending on whether, and to what extent, the applicable performance and other conditions are satisfied and on the value of the Company’s stock.”
This bonus has now been raised from $15 million annually to $20 million annually.
What do you think about this increase per annual bonus? Do you feel that this is a bit much or just right? Share your thoughts with us on our Facebook Page.