Nov 28, 2022

Disney to Pay Bob Iger $2 Million a Year as CEO Consultant, Despite His Strained Relationship with Successor Bob Chapek

Last year, former Disney CEO Bob Iger received an offer for a consultant worth a hefty $10 million.

According to a report in the Financial Times, a five-year consultancy contract with his former employer will pay $2 million per year until the end of 2026.

According to Disney's corporate filings, Iger was tasked with supporting his successor CEO and advising the new CEO "on such matters as his successor CEO may request from time to time." Disney agreed to the deal to take advantage of "Mr. Iger's unique skills, knowledge and experience in the media and entertainment business."

However, it is whispered that the relationship between Mr. Iger and his successor, Bob Chapek, was so strained that Mr. Iger's input was rarely sought or used by his successor.

Chapek's unwillingness to accept guidance from his former boss is said to have irritated Iger, especially how Chapek handled Disney's response to the controversial "Parental Rights in Education" bill in Florida, known as the "Don't Say Gay" bill. not.

Iger was also clearly unhappy with Chapek's appointment of Kareem Daniel as chairman of Disney Media and Entertainment Distribution; on his first day back as CEO, Iger dismissed Daniel and decided that the previous regime's data-oriented management approach He made it clear that he would not continue the data-driven management approach of the previous regime and would instead "put decision-making back in the hands of the creative team."

The FT reports that this consulting was suspended during Iger's two-year term as Disney CEO, but will resume again at the end of his term, at which point Iger will advise his next successor.

Iger is back in the CEO's seat, but his current contract is a reduction of about 40% from the salary Iger was earning at the end of his first 15-year tenure. The new package includes a $1 million base salary, a $1 million target bonus, and $25 million worth of equity compensation.