Disney CEO Chapek to receive at least $20M annual incentive as part of contract
Walt Disney Co. CEO Bob Chapek will receive a minimum incentive payment of $20 million annually as part of his new three-year contract, according to a filing with the SEC.
As part of the new contract, Chapek will be granted a long-term incentive award having a target value of not less than $20 million annually.
No agreement has been made to amend any other terms of Mr. Chapek’s existing employment agreement, including his base salary of $2.5 million.
According to the filing, “The proportion of his long-term incentive award comprised of performance-based restricted stock units will be increased to 60%. These awards do not guarantee Mr. Chapek any minimum amount of compensation. The actual amounts payable to Mr. Chapek in respect of such opportunities will be determined based on the extent to which any performance conditions and/or service conditions applicable to such awards are satisfied and on the value of the Company’s stock.
“Accordingly, Mr. Chapek may receive compensation in respect of any such award that is greater or less than the stated target value, depending on whether, and to what extent, the applicable performance and other conditions are satisfied, and on the value of the Company’s stock.”
Chapek’s total compensation in fiscal 2021, according to SEC filings, was $32.5 million. Of the total, $10.2 million came from a stock award and $14.3 million via the non-equity incentive plan.
