Former CEO Bob Chapek may be long gone from The Walt Disney Company, but the much-despised executive is still getting paid for his time in the Mouse House.
Chapek, who was fired from Disney in November, received a package worth $24 million for 2022 and is set to receive severance payments valuing over $20 million, so long as he successfully completes “all of the terms of his post-employment consulting agreement”.
Chapek’s severance will comprise of $6.53 million cash in remaining base salary through the scheduled expiration date of his amended employment agreement and about $1 million equivalent to a pro-rated target bonus for fiscal 2023. In addition, Chapek is eligible to receive accelerated Disney stock worth $12.7 million.
In a proxy statement filed on Tuesday, the Disney board laid out the timeline of Chapek’s dismissal, stating they “determined that Mr. Chapek was no longer the right person to serve in the CEO role” in the months following its renewal of Chapek’s contract in June 2022. “The significant developments and change in the broader macroeconomic environment over this period informed how the board viewed the appropriate leader in light of the rapidly evolving industry and market dynamics. The board therefore concluded that, as Disney embarks on an increasingly complex period of industry transformation, Mr. Iger is best situated to lead the company while an appropriate longer-term successor is identified.”