Last week, the board of directors for The Walt Disney Company voted unanimously to extend CEO Bob Chapek’s contract three more years, despite public dislike for the CEO. The SEC filing now makes the details of the contract extension public.
Chapek’s contract will now expire on July 1, 2025. His base salary of $2.5 million has not changed. The long-term incentive award included in the contract has increased from $15 million annually to not less than $20 million annually.
Read the SEC filing:
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.
For the latest Disney Parks news and info, follow WDW News Today on Twitter, Facebook, and Instagram.
What a disgrace. The Cast Members are making either slightly above minimum wage to max $16/hour for the Security CM’s. And Chapek has not only had his annual salary doubled by the board in 2021, now his bonus will be $20M. To reward the man who has gutted the budgets, laid off thousands, all while charging us more than ever before, and giving us the least we’ve ever gotten at the parks and resorts, is beyond comprehension. Chapek typically polls below 20% approval. What CEO besides BP Petrol polls that low? I think Thanos would poll higher than Chapek. Look at his Star Wars hotel and the astronomical price vs what you get – an escape room with food you’d find at a movie theater snackbar. That sums up Chapek the best. I really hope people stop coming to the parks, or at the very least stop buying all of the services that used to be free e.g.: genie plus, LL, photopass, and I really hope they stop staying at the hotels. Chapek destroys the magic on a daily basis. He’s running the parks on a skeleton crew, leaving restaurants half full, and leaving us on hold for 4 to 6 hours or more trying to call Customer Service. Chapek puts HIS profit sharing above the parkgoers, hotel guests and AP’s. It’s a very dark time for Disney, Disney fans and most of all the Cast Members.
I know that not all folks is going to like this and I do not either but there needs to be worldwide push for everyone who are true Walt Disney followers to stop buying anything Disney & to stop going to all Disney Parks worldwide drop their Annual Passes no longer spend money that is Disney related. Then when Disney understands and lets go of everyone pushing this nonsense from the top down & gets rid of all Woke Castmembers. Then hire replacements that Walt, Roy and all of the people who helped Walt found the Disney Co. and things get back on track then and only then everyone can come back! I know it is drastic but is most likely the only way!!
Oh I forgot to say pass the word on to as many folks as you can and have them do the same and so and so on because there are many folks who do not know whats going on!
Yes because the pay of a CEO and the pay of unskilled children should somehow be related.
Mr. TOM!!! it’s time to bring back the Bobby Chapek sattire skits… literally were like living in an episode of Twilight Zone.
Just think of the ticket prices that could be lowered if Bob Paycheck was paid a normal CEO salary. Disney is for the Wealthy and the majority of America will never be able to go there……Really SAD!!
A normal CEO salary… for one of the biggest companies in the world. Ha, fat chance. He’s not even in the top 10 in CEO salaries.
https://fortune.com/2022/05/28/highest-paid-ceos-in-america-2021/
Think about what improvements they could do with that money instead! They could even create a new nighttime parade for MK for that money!!
That is totally ridiculous. The money could be better spent on maintenance.
Done with Disney after this!! Selling my stock positions as well, after next Board vote, so I can vote against current Board. Hello Universal!
Just look up Uni’s CEO salary and then come back. I’ll wait…
Too lazy? I’ll help out. Almost $60 million.
Now what do you have to say?
Bob C should not receive one nickel until he turns the profitability around for media and entertainment, gets the stock price back above $170/share and gets Reedy Creek back. His very poor decisions have cost Disney approximately 1/2 of a Billion dollars!
He needs to start giving some of his bonus to the die hard Disney fans that he have offended BIG TIME! My opinion is to get him out – I personally don’t like him – maybe Disney does only care about the money! Walt and Roy Disney are most likely spinning in their grave cause non-Disney family members are ruining their family legacy!
Wow.
What a way to show your true disdain for the employees who kept the parks alive during and after the pandemic, and continue to live paycheck to paycheck.
Disgusting.
Truth!
My thoughts exactly. Maybe instead if him getting 20 million, perhaps use it to give a small bonus to the 77k employees. That would be about $300 each. Small yes, but they deserve it more than him.
These corporate execs are making WAY too much money. This is and always has been part of the problem. 20 Million Dollars to Chapek, but they couldn’t retheme the FESTIVAL OF FANTASY PARADE to a DISNEY50 extravaganza, which I’m sure could not have costed very much. This doesn’t even have to do with whether or not I like him. He could super popular and I would still assert that you don’t any human being that much money… certainly not for a company that was going to bring in billions with or without him.
Two-three-four Million dollars is something I can see.
But 20 Million EVERY 12 MONTHS !!?? — just doesn’t seem warranted. That’s an exorbitant amount of money for a man who does no OWN the company. I can only see a private OWNER garnering that much money.. but his is a public company. Sheesh.
Aweful! He now has 3 more years to completely destroy Walts dream
.
None of my money will be part of his bonus!
RIP Walt Disney. 😮💨
Holy crap! I wish I could get paid millions every year to screw stuff up and piss customers off.
Chapek is slim and needs to be fired. As a shareholder I’d vote in favor of replacing him and the whole board. The valued Disney imagine is being replaced with $$$ and fans are turning to Universal and other streaming services.
Wow, what a joke. Our entire family decided during our last visit in March that we are done with Disney parks. Poor decisions and leadership shouldn’t be rewarded.
This is totally irresponsible, reprehensible, and immoral. Agreeing to pay a person who, in so many ways, is destroying the Disney experience, creating inequality by targeting the rich, and ruining the Disney reputation, for what. Corporate PROFIT. Eventually loyal guests will stop coming, stop spending, and stop supporting the new Disney culture. So sad that my grandchildren will never be able to enjoy the true Disney vacation experience.
Such a shame that greed has taken over Disney. I don’t think for one moment this would have been Walt’s vision:- Grab as much money as you can from visitors. Rather offer a more affordable version whereby more people could afford to go year after year and generation after generation.
Capitalism can be really sad at times. “We made a massive X amount of profit last year but this year we need to make x+1 profit so where can we screw people?”
Boycott Disney+
That will hit Bob Paycheck where it hurts … his precious ‘subscriber data’
Bob Paycheck has a lot riding on Disney+, and if subscriptions tank he will be in trouble
Boycott Disney+
20 Mil a year to erase 100 Million plus in market cap?
I would have done it for half that price.
WHAT???? Chapek has done nothing but destroy Disney and they give him a huge salary and 3 more years? No wonder the Parks are getting more expensive by the minute! I want a CEO that has a heart like Walt Disney! Bring back the magic!
It seems very fitting that Bob it’s getting all these money raises. On the account of cast members and the falling of a lot of infrastructure at the Disney parks and resorts. By saving in not doing critical repairs of infrastructures and like cutting air conditioning and comforts in many areas is saving money for Bob and the investors. Guess complain everyday but they keep coming in the meantime they only repair what is needed at the moment. That cast members chose to work there is our choice but to put on the pressure to cast members and make it all look good it’s just a show that will not sustain well in the near future. And by the way all these complaints are given to management and just and they just look the other way.
What a gut punch to all of the true Disney fans. This man didn’t even get the tag lines correct for the parks. Happiest place on earth.. lol not anymore. Thanks boob paycheck. I would sell my stock but it’s lowere than what I paid. I am also dumping Disney plus. Sad just sad. Charging 17.00 for a ride that was free with admission. Sick
The only thing these scummy CEOs deserve is a bullet in the head.
YOULL BE BACK… lol Tom sing it again Brother..
I wish I had known the last time I took a trip to Disney would be the last!!! This is extremely disappointing as Bob Paycheck is doing an awful job and raising prises and letting the parks fall to shambles. Until Disney gets a new CEO I don’t see me or my family going back.
Ya know what they CAN quantify accurately? Numbers. Ya know what they can’t quantify accurately? Guest happiness and satisfaction. (They can manipulate those numbers all day!) Any devoted WDW fan has felt the MAJOR slip in ‘the magic.’ Everywhere! It used to be the norm to be regularly thrilled with the entire guest experience at hotels, parks, restaurants, parking lots, transportation, etc etc. EVERYWHERE! Now… not so much. Where once the majority of cast members were extremely knowledgeable, skilled at what they did, cheerful and entertaining, now, there seems to be a general malaise among most (not all!) cast members. Any Disney exec reading this would play the ‘pandemic card’ which is pure nonsense. Solid management can overcome anything including a plandemic (which Disney did a horrible job responding to) Weak leadership in a company of this quality is extremely sad to experience… and now we learn it comes with a hefty paycheck.