Disney CEO Bob Chapek will nab a $20 million bonus every year, fresh on the heels of winning a three-year contract extension despite recent upheaval at the company over hot-button political issues.
The details of Chapk’s three-year contract were revealed in a recent SEC filing, which said that the beleagured exec will reel in “no less than” $20 million annually on top of a $2.5 million base salary.
While Chapek’s base salary has remained unchanged from his last contract, his bonus increased by $5 million a year.
That’s despite Chapek’s fumbling response to Florida’s “Don’t Say Gay” law, in which he at first stayed silent on the issue, and then, amid employee outrage and protests, condemned it. The Florida law bans the discussion of gender identity and sexual orientation for kids in kindergarten through third grade.
In response, Florida Gov. Ron DeSantis signed a law that would strip its Florida theme parks of its self-governing status. The law, which was signed in April, dissolves Reedy Creek Improvement District, which operates as an autonomous entity on land straddling Orange and Osceola counties that has the power to levy taxes, build infrastructure, grant licenses and institute its own zoning laws.
The new law dissolving the district doesn’t take effect until June 2023.
Despite whispers of Chapek’s demise as CEO, the Disney board backed the exec and renewed his contract last week until 2025.
“Disney was dealt a tough hand by the pandemic, yet with Bob at the helm, our businesses — from parks to streaming — not only weathered the storm, but emerged in a position of strength,” Disney chairwoman Susan Arnold said in a statement last week.
“Bob is the right leader at the right time for The Walt Disney Company, and the Board has full confidence in him and his leadership team,” Arnold added.
The board’s vote of confidence in Chapek comes just weeks after he fired Disney TV content chief Peter Rice and promoted his number two, Dana Walden. Insiders viewed the dismissal as a power move given that Rice was seen a potential threat to Chapek’s job.
Chapek replaced longtime CEO Bob Iger, who stepped down in February 2020, a few months before the pandemic crushed Disney’s movie and theme parks businesses. Disney’s parks, which include Disneyland and Disney World, were forced to temporarily close, as a result.
The CEO soon got ripped for his handling of the “Black Widow” debacle, in which Scarlett Johansson sued Disney over her compensation for starring in the superhero flick. Disney lashed out, kicking off a public war of words with Johansson’s powerful agent, Bryan Lourd, who runs talent agency CAA. The suit was settled in September.