Ousted Disney CEO Bob Chapek is expected to receive a $20 million severance payout according to a Tuesday regulatory filing.
The Disney chief also earned $24 million in 2022, including a $2.5 million base salary and millions in stock options, according to ABC News. Chapek took over the operations at Disney in Feb. 2020 when CEO Bob Iger retired. Chapek faced scrutiny after a hectic two-year reign marked by COVID-19 closures and a public relations fiasco after criticizing Florida’s “Don’t Say Gay” bill. Disney fired him in Nov. 2022, according to Comicbook.
Ousted Disney CEO Bob Chapek is getting a $20 million golden goodbye, on top of the $24 million he earned in 2022 https://t.co/kDQXzJhJHx
— Insider Business (@BusinessInsider) January 18, 2023
Disney faced a significant slowdown in the demand for streaming services during Chapek’s tenure, according to ABC News. Chapek’s tenure was extended for three years in June 2022, but a proxy filing by the board later indicated a sharp change of course. The board declared Chapek “was no longer the right person to serve in the CEO role,” and quickly replaced him with his predecessor, Iger.
“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 filing said, according to ABC News. (RELATED: Disney Shares Plummet Following Billion Dollar Earnings Miss)
Ousted Disney chief executive Bob Chapek is set to receive a hefty paycheck following his exit https://t.co/8bFMDclfiT pic.twitter.com/N1Q2qeSEaf
— CNN (@CNN) January 18, 2023
Susan Arnold, chairwoman of Disney’s board of directors, released a statement shortly after Chapek was fired.
“We thank Bob Chapek for his service to Disney over his long career, including navigating the company through the unprecedented challenges of the pandemic,” Arnold said, according to Comicbook.
“The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period,” she said.
Disney shares have suffered, falling to roughly $100 a share after trading at nearly $170 a share in Jan. 2022, according to ABC News.
The entertainment giant lost $1.5 billion in the fourth quarter, and Disney continues to face uncertain economic times.