Last week, Disney CEO Bob Chapek was given a contract extension by The Walt Disney Company Board of Directors. The extension followed a vote of confidence via a public statement from the Board in early June.
An SEC filing details the terms of the contract extension, which will now expire on July 1, 2025 and include an annual bonus target of not less than $20 million annually. Chapek’s bonus was previously set at $15 million annually before his contract extension. Chapek’s base salary was not increased in the most recent SEC filing and remains set at $2.5 million per year.
On June 28, 2022, the Board of Directors of The Walt Disney Company (the “Company”) and Robert A. Chapek, the Company’s Chief Executive Officer, agreed to extend the term of Mr. Chapek’s employment agreement with the Company to three years, beginning from July 1, 2022.
The employment agreement will be amended to provide that Mr. Chapek will be granted a long-term incentive award having a target value of not less than $20 million annually. The proportion of his long-term incentive award comprised of performance-based restricted stock units will be increased to 60%. These awards do not guarantee Mr. Chapek any minimum amount of compensation.
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. No agreement has been made to amend any other terms of Mr. Chapek’s existing employment agreement, including his base salary.
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Despicable. So what if the visitor experience is in freefall while prices skyrocket? The shareholder economy at its worst.