Business Maverick: Outgoing Disney CEO Bob Chapek Likely Leaves With at Least $23 Million

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Bob Chapek leaves Walt Disney Co.’s top job with exit payments and benefits that could be worth more than $23 million. That’s without including the millions more he could collect in the coming years if the company’s share price recovers.

He’s also entitled to the pension he’s accumulated over his decades-long career at Disney. As of October 2021, filings show it stood at $16.9 million. That money is his, regardless of the circumstances of his departure.He holds a trove of Disney stock options, though most of them are underwater. If he had exercised his in-the-money securities and immediately sold the shares at Friday’s U.S. market close, he would have collected around $3.5 million.

He also holds stock awards he received in prior years that haven’t yet vested. Some of them will likely continue to vest even though he’s no longer at Disney. How much they’ll be worth — and how many securities he’ll receive — will depend on the shares’ trajectory after they plunged 41% this year. If they pick back up, both the stock and the options will swell in value.

For now, hardly any of this is etched in stone. It’s not uncommon for boards to strike bespoke exit agreements with CEOs, especially in contentious situations where they are cutting the person’s contract short. And if a board concludes that a CEO broke company policy or didn’t fulfill the commitments of the employment agreement, it may decline to pay the person at all.

While Chapek’s payout by most measures is a generous one, it’s far from the rich entitlements that some chiefs in the entertainment industry have enjoyed in the past. When Chapek took over as CEO in 2020, the board set his target pay in the bottom quartile for media chiefs. The move followed years of controversy over Disney’s executive compensation, where everyone from shareholders to lawmakers and a Disney family heir had derided Iger’s pay.

 

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Disney should stop going woke. Pushing such trash like the new snow white. They forgot to change the name to pitch black.

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