In its annual meeting on Tuesday, the corporation disclosed that ex-Disney CEO Bob Chapek received a total of $24 million in the fiscal year 2022, which represents a significant decrease from the $32 million he earned the previous year.
Chapek, who abruptly exited in November, is entitled to a potential payout exit total of $20.4 million. This includes $12.6 million in restricted stock units as well as a pro-rated bonus target of $1 million for fiscal year 2023, equivalent to the remaining base salary of $6.5 million through the scheduled expiration date of his employment agreement.
Bob Iger, the current CEO, stepped down as the executive chairman in February 2020. In the previous year, he had a total package of $45.8 million, with $14.9 million as his salary.
The circumstances were somewhat perplexing, according to the board’s clarification, as they had recently extended Chapek’s agreement in June.
The Board has decided to exercise its right to terminate Mr. Chapek’s employment without cause if he successfully completes all the terms of his post-employment consulting agreement and does not violate the terms of his employment agreement or the general release upon his termination. The Board has identified an appropriate longer-term successor to lead the Company as Mr. Iger embarks on a complex and rapidly evolving industry transformation period. In light of the significant change and developments in the broader macroeconomic environment and the evolving market dynamics, the Board views it as appropriate to have a leader who can navigate the Company through the unprecedented challenges of the growing streaming business and the ongoing pandemic. Therefore, the Board has determined that Mr. Chapek is no longer the right person to serve as CEO and has continued to spend significant time discussing the Company’s leadership in the months that followed. Based on Mr. Chapek’s work on navigating the Company through the challenges of the pandemic and the growing streaming business, the Board has agreed to extend his employment agreement until June 2022.
The fiscal year of Disney concludes on September 30th.
The bundle consisted of Chapek’s: $2.5 million fundamental wage; $10.8 million in stock grants; $8.5 million in alternatives grants; and $6.75 million in non-equity incentive scheme remuneration (similar to a cash bonus).
Iger earned a base pay of $1.1 million, with an additional $2.4 million in other compensation and $4.34 million for the non-equity incentive plan. He also received $2.4 million in stock awards and $4.6 million in options awards.
The company’s executives were compensated handsomely, with the highest pay package totaling $20.2 million. Christine McCarthy, the CFO, received $15 million, Horacio Gutierrez, the General Counsel, received $5 million, Paul Richardson, the Chief HR Officer, received $6.2 million, and Kristina Schake, the Chief Communications Officer, received $6.2 million.
Disney will be responsible for selling the property and will experience any gains or losses from the transaction. A third-party vendor bought the property on behalf of the company in June 2022 for the same price it was originally purchased. Geoffrey Morell, the former head of corporate affairs, had a compensation package valued at $8.4 million. He is eligible to receive $2.5 million in remaining base salary until the end of his original employment agreement, $1.5 million, which is equivalent to a target bonus for 2022, and a buyout for the home he bought in Southern California when he accepted the position. He was hired in January 2022 and terminated five months later.
The company suggests voting against the proposal to modify its bylaws by the activist investor. Disney advises shareholders to reject his vote. Peltz announced his candidacy for a board position. The company’s annual meeting, which is anticipated to involve a proxy battle with Trian Partners and its owner and activist investor Nelson Peltz, is scheduled for March, although a specific date has not been given.
Last week, Trian bombarded Disney with criticism from viewers on CNBC and shareholders, bashing the company. Earlier this morning, Disney swung out with a statement, noting that Peltz’s input would not be absolutely useful, and added a few more digs in the proxy. Disney seemed oblivious to the ongoing secular change in the media industry, as well as the impact of the pandemic on each part of the business. In fact, they did not actually present a single strategic idea for Disney during the meeting with representatives from Trian Group, including Mr. Peltz, despite months of engagement. The directors considered a number of factors before deciding not to recommend Mr. Peltz. They seemed to disregard the impact of the pandemic on each part of the company’s business, as well as the ongoing secular change in the media industry.