Wednesday 29 June 2022 08:30 AM 'Bob is the right leader at the right time for Disney': Chapek signs a ... trends now
Disney's embattled CEO Bob Chapek has had his contract extended for a further three years, despite presiding over one of the most turbulent times in the company in recent memory.
Chapek, 61, took over the company in February 2020 and earned $32.5 million in the year to October 2, 2021.
His compensation was comprised of $2.5 million in salary, $10.2 million in stock awards, and $3.8 million in stock options - plus a $14.3 million bonus.
The pay for the next three years has not been revealed.
His contract was extended at the end of a two-day meeting of Disney's board.
The directors voted unanimously to replace his current deal, which expires in February 2023, with a new three-year agreement starting July 1.
Bob Chapek, 61, CEO of Disney, is seen on June 2 during the opening ceremony for Avengers Campus inside Disney California Adventure. On Tuesday his contract was extended for a further three years
Disney's shares closed down 0.71 percent on Tuesday at $95.92 - a far cry from their March 2021 high of $197
'Disney was dealt a tough hand by the pandemic, yet with Bob at the helm, our businesses — from parks to streaming — not only weathered the storm but emerged in a position of strength,' said Susan Arnold, chairman of the board.
'In this important time of growth and transformation, the Board is committed to keeping Disney on the successful path it is on today, and Bob's leadership is key to achieving that goal.'
The board said in a statement: 'Bob is the right leader at the right time for The Walt Disney Company, and the Board has full confidence in him and his leadership team.'
Yet the stock market felt otherwise, with Disney's shares closing down 0.71 percent at $95.92 - a far cry from their March 2021 high of $197.
Disney's share price has fallen 38.06 percent in the last six months, as Chapek's honeymoon phase ended, and he was forced to confront multiple crises.
Disney's animated movie 'Lightyear' flopped in its first weekend in theaters, with the new Toy Story spin-off film earning $51.7 million in North America.
'Lightyear' opened in 4,255 locations domestically and in 43 markets overseas - but 14 Muslim-majority nations banned the movie from playing in their cinemas because Disney included a lesbian kiss
Not only did the movie open lower than expected, but it also failed to conquer 'Jurassic World: Dominion', which held on to the first-place spot with $58.7 million in its second weekend.
Tim Allen (pictured in 2020) was overlooked to reprise the role of Buzz Lightyear in the spin-off movie
Expectations were high for 'Lightyear', an origin story about the movie that inspired the space ranger action figure in the 'Toy Story' movies, with some analysts pegging the movie for a $70 million North American debut. But it didn't come close to that figure.
The disappointing start came after controversy over Disney's decision to include a brief kiss between a lesbian couple in the movie and to replace the conservative star Tim Allen with Chris Evans as the voice of Buzz Lightyear.
He has been at loggerheads with the governor of Florida - the state which, since the founding of Disney World in 1967, has granted special administrative status to the company on the site.
Ron DeSantis, the governor, in April revoked Disney's special status after the company criticized his enacting of the 'Don't Say Gay' bill, which prevents discussion of homosexuality in classrooms with young children.
Disney's tepid response to the controversial bill led to protests and worker walkouts
Disney employees are seen protesting against the 'Don't Say Gay' bill on March 22 in California
Chapek was initially unwilling to speak out publicly against the bill - something which his predecessor Bob Iger, 71, rebuked him for.
The bill, which Joe Biden called 'hateful' but which supporters say protects children, was signed into law by DeSantis in April.
On June 16, Disney announced it is delaying the opening of its Florida tech campus, which would have relocated 2,000 workers from California.
However, Disney officials insisted the delay had nothing to do with tensions with the clash with DeSantis and said they simply needed more time to build the campus.
It will house digital technology, finance, and product development employees - in the Orlando area and the company wanted to give workers additional time to adjust to the transition.
The new opening date for the Florida campus will be in 2026. The company's giant theme park resort, Walt Disney World, is located about 20 miles away.
'While a growing number of our employees, who will ultimately work at the campus, have already made the move to central Florida, we also want to continue to provide flexibility to those relocating, especially given the anticipated completion date of the campus is now in 2026,' Disney said in a statement.
Chapek has come under fire for his clumsy handling of the row with DeSantis.
On March 7 he released a memo telling staff that Disney hadn't released a statement sooner because 'they are often weaponized by one side or the other to further divide and inflame.'
He later apologized for the company's handling of the bill, saying Disney would pause all political donations in the state and increase support for advocacy groups working to combat similar legislation in other states.
Disney employees staged a series of walkouts earlier in the month in protest at Chapek's failure to be more vocal on the issue - Disney employs 77,000 people in Florida.
Iger, meanwhile, tweeted his criticism of the new legislation.
He told CNN+ that he thought it was a clear-cut issue.
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