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Business Nov 21, 2022
Angela George |CC BY-SA 3.0
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Bob Iger’s return to The Walt Disney Co. could prove particularly lucrative, with federal documents filed Monday indicating he could earn around $27 million annually depending on overall performance.
According to paperwork filed with the Securities and Exchange Commission, Iger will earn a base annual salary of $1 million for each of the two years of his contract as the company’s CEO. The employment agreement also makes him eligible for “an annual, performance-based bonus under the company’s applicable annual incentive plan … with a target equal to 100% of the base salary,” according to the paperwork.
“The actual amount payable to Mr. Iger as an annual bonus will be dependent upon the achievement of performance objectives, which will be substantially the same as the objectives established under the plan for other executive officers of the company,” the papers state. “Depending on performance, the actual amount payable as an annual bonus to Mr. Iger may be less than, greater than or equal to the stated target bonus, and could be zero.”
Iger, 71, is also eligible for additional compensation under the company’s “equity-based long-term incentive plans and programs,” according to the document, with Iger eligible for a target of $25 million each year.
The SEC filing gives no specifics of the severance paid to ousted CEO Bob Chapek. The document states only that the company “exercised its right to terminate without cause” his employment.
“Effective as of the termination, Mr. Chapek also resigned from the board pursuant to the terms of his employment agreement,” according to the document. “In connection with his termination, Mr. Chapek will receive the separation benefits payable in accordance with the terms of his previously disclosed employment agreement.”
The Hollywood Reporter reported that Chapek’s severance is likely worth at least $20 million, based on a review of his contract. According to Variety and The Hollywood Reporter, Iger’s compensation package with Disney in 2021 totaled $45.9 million.
Disney made the stunning announcement Sunday night that it had ousted Chapek and brought back Iger, who was with the company for more than four decades, including 15 years as its CEO and two as executive chairman before his December 2021 departure.
Chapek’s ouster came amid financial doldrums at the company that led to announced plans for layoffs and a hiring freeze. The company’s recent quarterly earnings report showed higher-than-expected subscriptions to the Disney+ streaming service, but the ballooning costs of content production still led to operating losses of nearly $1.5 billion.
In a statement released through the company Sunday, Iger said he was “extremely optimistic” about the Burbank-based company’s fugure.
“Disney and its incomparable brands and franchises hold a special place in the hearts of so many people around the globe — most especially in the hearts of our employees, whose dedication to this company and its mission is an inspiration,” he said. “I am deeply honored to be asked to again lead this remarkable team, with a clear mission focused on creative excellence to inspire generations through unrivaled, bold storytelling.”
According to Variety, Iger agreed to return to Disney despite being in negotiations for a lucrative position at the RedBird Capital Partners investment firm.
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