In Disney’s most recent Proxy statement, Bob Iger’s and Bob Chapek’s compensation for 2020 was disclosed. Bob Iger’s salary decreased from $3,000,000 to $1,569,581. He was awarded stock and options awards as well. His total compensation was $21,031,389 which is down from $47,517,762.
New CEO Bob Chapek’s salary was $1,814,608. Adding in stock and option awards, his total compensation for 2020 was $14,163,936. This was the first year in the role.
Disney did not award cash bonuses to any executives listed in the proxy statement.
The Board’s rationale for the compensation:
- Disney mitigated the pandemic’s impact on the Company’s liquidity with the issuance of $18 billion in term debt, execution of a $5 billion 364-day revolving credit facility and continued consolidation of global cash balances;
- Disney developed the Company’s re-opening strategy for our Parks and workplaces globally, putting in place responsible standards in health, safety and wellbeing for our employees, cast members and guests;
- The company enhanced and focused the Company’s diversity and inclusion efforts through a new, six-pillar approach that puts a premium on transparency, representation, accountability, community, inclusive content, and culture
- The ongoing successful launch of Disney+.
- Continuing the successful integration of 21st Century Fox and Hulu, which is expected to drive above-target synergy savings.
The Board’s Assessment of Bob Iger:
- Successfully launched Disney+ and drove unprecedented subscriber growth in the first year, while also increasing subscribers at ESPN+ and Hulu.
- The release of compelling original content for Disney+ (Hamilton and Mulan), and Hulu (FX). This is in addition to the successful content created for traditional theatrical release (Frozen 2, Star Wars: The Rise of Skywalker) and linear networks (The Last Dance and the NBA season restart at Walt Disney World).
- Established the Executive Chairman’s Creative Inclusion Council, which brings together diverse creative executives at all levels across the Company to accelerate our work in creating inclusive content.
- In response to COVID-19, the Company provided $26.6 million of in-kind donations to communities around the world, including PPE, food and consumables.
- Recognition of Disney as one of the “World’s Most Admired Companies” by Fortune (#4 overall and #1 in entertainment) and #2 in MBLM’s annual Brand Intimacy Study, which measures the bonds consumers form with the brands they use and love.
The Board’s Assessment of Bob Chapek:
- In the wake of COVID-19’s impact on theaters and our content pipeline, worked to quickly program new offerings on our DTC and linear channels, while preparing plans to responsibly reopen our parks and production operations around the world.
- Launched our direct-to-consumer services in several key markets, while converting Hotstar to Disney+ Hotstar and announcing the launch of a Star international general entertainment service planned for fiscal 2021 in Latin America and Europe.
- Enhanced and focused the Company’s D&I efforts through a new, six-pillar approach that puts a premium on Transparency, Representation, Accountability, Community, Inclusive Content and Culture. Began delivering change by establishing the CEO Diversity & Inclusion Council, championing the Black Talent Network, investing in inclusive storytelling and requiring leader accountability.
- Recognition of Disney as one of the “World’s Most Admired Companies” by Fortune (#4 overall and #1 in entertainment) and #2 in MBLM’s annual Brand Intimacy Study, which measures the bonds consumers form with the brands they use and love.