Robert Iger, the returning chief executive of Walt Disney Co (NYSE: DIS), will get a basic compensation of $1 million per year as well as a long-term incentive grant with a target value of $25 million, the company said on Monday.
A performance-based incentive with a goal of 100% of basic pay will be available to him.
Iger, 71, who served as CEO for 15 years before retiring as chairman last year, has agreed to continue in that role for another two years, Disney announced late on Sunday.
Bob Chapek, who took over as CEO of Disney in February 2020 just as the COVID-19 pandemic forced park closures and visitor restrictions, will be replaced by him.
According to the provisions of his previously publicized employment agreement, Chapek would get separation benefits, the business stated. During Chapek’s tenure, the streaming platform Disney+ suffered significant losses, and the company’s stock lost nearly a third of its worth.
Investors have praised Bob Iger’s return to Disney despite rumors that he may fire the company’s streaming division.
As the company fights to stop a share price decline and navigate America’s culture wars, Walt Disney abruptly fired chief executive Bob Chapek and parachuted in former boss Mr. Iger.
Following less than three years in charge and only a few months after his contract was renewed, the Disney board announced that Mr. Chapek would be stepping down with immediate effect.
Mr. Chapek, a seasoned Disney executive, took over as CEO in February 2020 and guided the company through the Covid-19 epidemic. Under his leadership, shares have stumbled though, and the business has publicly fought with Florida Governor Ron DeSantis.
Kareem Daniel, chairman of Disney’s media and entertainment distribution division and a business leader personally chosen by Mr. Chapek, was announced by Mr. Iger to be leaving the company just one day after his return.
Mr. Daniel served as Mr. Chapek’s longstanding subordinate. Mr. Chapek established the unit in October 2020 to centralize the sales and distribution of motion pictures and television.
According to Mr. Iger, he intends to introduce a “new structure that rationalizes expenses and returns more decision-making to our creative teams.”
I firmly believe that storytelling is what drives this company and that it should be at the heart of how we run our business, he continued.
Although the adjustments will “focus on developing a more efficient and cost-effective organization,” Mr. Iger warned they would be “unsettling.”