While the old, now-new Disney CEO Bob Iger will apparently take a pay cut compared to his previous tenure, he still might wind up north of $50 million for his two-year contract.
In a recent article, The Hollywood Reporter revealed the salary of Iger, who was reinstated as CEO of The Walt Disney Company in a surprise move on Nov. 20, ousting his handpicked successor, Bob Chapek, with immediate effect. The new/old Disney boss will reportedly receive an annual income of $1 million, which is only a third of the amount he received when he last ruled the company (his first tenure ended in February 2020). An annual target bonus of another $1 million also seems comparatively modest to earlier times, especially since he was awarded a bonus valued at $23 million in fiscal 2021.
Bob Iger's Performance-Based Disney Pay
However, Iger's new base pay and bonus are far outshone by an annual long-term incentive award valued at $25 million, of which 60 percent will be performance-based RSUs (Restricted Stock Units). The remainder will be stock options that will vest if Iger fulfills his roughly two-year contract, which runs until the end of 2024. All this adds up to a $54 million payday for a little over two years at the helm of Disney.
With most of this salary tangled up in RSUs and stock options, the actual amount might strongly vary from these estimates, depending on whether Iger's performance meets the expectations of the company's board (which he also joined as a member) and the overall performance of the company. "Mr. Iger 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," The Walt Disney Company wrote in a filing with the Securities and Exchange Commission that also detailed the financial terms of Iger's contract.
Bob Chapek's Disney Severance
Chapek will reportedly leave the company with a severance package valued at a minimum of $20 million, though the exact number could end up higher, depending, among other factors, on the vesting schedule of his stock holdings. The outgoing CEO led The Walt Disney Company through two difficult years that included diminishing box-office returns due to the pandemic and heated debates about whether Disney had become too woke or was not woke enough. He not only defended the company's growing sense of diversity but also was an advocate for more mature content being produced under the traditionally family-friendly Disney banner.
Source: The Hollywood Reporter