In case you are a bit behind on the Disney news, then there are some BIG changes you may have missed. On November 20, Disney’s Chairman of the Board, Susan Arnold, announced that CEO Bob Chapek had been fired and that former Chief Executive Officer Bob Iger would be coming back to take the reins.
The late-night move was surprising, but only in the sense that it happened just a couple of months after Chapek’s contract had been extended for 3 years. The move was not surprising, as Disney’s value and stock price had been tanking since Chapek took over.
Before Chapek’s firing, it had not been a secret that Bob Chapek and Bob Iger were not on good terms. In fact, the two men were barely speaking. Chapek felt that Iger had undermined his authority before leaving the company, and Iger felt that Chapek lacked empathy and wasn’t running the business well. Iger was even quoted as saying that appointing Chapek was one of his “worst business decisions”.
Now, we are learning that Bob Iger was actually being paid $10 million per year to consult with Chapek on company matters. Iger had been Executive Chairman after making Chapek CEO, but stepped away from that role in 2021, but stayed in a relationship with Disney through a “consulting services” agreement.
In a new report from The Financial Times:
Under terms disclosed in Disney’s corporate filings, Iger was granted $2mn a year until the end of 2026 for advice “on such matters as his successor as chief executive officer may request from time to time”.
Disney said the five-year consulting services deal would enable the company “to have access to Mr Iger’s unique skills, knowledge and experience with regard to the media and entertainment business”.
Disney’s filings also reveal that Iger will not receive his consulting fee now that he is back in the role of CEO. He will remain in the position through December 31, 2024, at which time a new CEO will take over. During the time he is CEO, Iger will take a salary of $1 million — which essentially means that he took a pay cut to come back to the House of Mouse.
Not long after Chapek’s firing was announced, a heartfelt message that Iger sent to all Disney employees was released. Chapek, on the other hand, has remained silent about his termination. Although, that could be because the terms of his separation come with a non-disclosure agreement, as well as a non-disparage agreement.