Former Chief Executive Officer of Walt Disney Co, Bob Chapek, who was recently fired by the production company will get nearly 23 million dollars as exit payment and other benefits. The amount of payment the company should give to Bob Chapek was calculated by Bloomberg News based on the latest regulatory filings.
According to the contract, the company has signed with Bob Chapek, he is entitled to collect a salary for the full duration of his term, even if he is fired from the top post by the company. Walt Disney Co had recently extended Bob Chapek’s term as chief executive officer of the company till mid-2025. A rough calculation of salary between now and then will amount to nearly 6.5 million dollars.
Bob Chapek who joined Walt Disney Co as marketing manager at Buena Vista Home Entertainment division had a long career at the company in various positions. This lengthy career entitles Bob Chapek to a pension from the company. As of October 2021 (filings made by the company with regulators), he should get nearly 17 million dollars as a pension.
Apart from cash payments, Bob Chapek also owns a large number of stocks of Walt Disney Co (apart from stock awards). Even though the stocks of the company are not performing well now, any surge in the share value can increase the worth of shareholding owned by the former CEO.
He is also entitled to various stock awards he has received over the years. Many of those stock awards still haven’t been vested into his portfolio. Even if he was fired by the company for unknown reasons, some of the stocks will continue to be in his name and be vested in him in the future. How much those stocks are worth, or how many scrips he will receive as the stock award will depend upon the value of shares.
Finally, Chapek has a so-called non-qualified deferred compensation plan, which is akin to a super-sized 401(k) that many large companies set up for high-earning employees. It usually lets them invest some of their earnings into a selection of equity and bond funds. Around a year ago, Chapek had about $8.5 million in his plan, a figure that has likely changed given the recent market volatility.
Over the last year, the share value of Disney stocks has gone down by more than 40 percent for various reasons. The company is hoping to regain the confidence of Wall Street by making restructuring top management and workforce.
Walt Disney Co has now appointed Robert Iger as chief executive officer of the company. Robert Iger who was Chief Executive Officer of the company for 15 years till 2020 is expected to bring the prescription company back on track.
