The entertainment and business worlds were hit with a huge surprise on Sunday night when it was announced that Bob Iger had returned to The Walt Disney Company, with Iger replacing his own successor Bob Chapek as chief executive. Iger had previously retired in 2020 and while one might think it would require a major paycheck to bring the executive back, Iger actually took a massive pay cut to return to his old job. According to a report from Variety, Iger’s base salary is $1 million and along with bonuses and a long-term incentive award, could earn up to $27 million each year of his contract, which ends on December 31, 2024.
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That $27 million is nearly half of what he earned in 2021. The report indicates that Iger’s total 2021 compensation was $45.9 million. However, even with his current compensation being a cut from 2021, it’s still more than he received in 2020, during which he earned $21 million. In comparison, Chapek’s total 2021 compensation was $32.5 million.
Bob Iger’s note to Disney employees
Late Sunday, Disney employees received a company-wide email with a note from Iger about his return.
“It is with an incredible sense of gratitude and humility—and, I must admit, a bit of amazement—that I write to you this evening with the news that I am returning to The Walt Disney Company as Chief Executive Officer,” Iger wrote in his memo to Disney Cast Members.
He then applauded the company’s work throughout the pandemic, lauding them for keeping the company afloat.
“I know this company has asked so much of you during the past three years, and these times certainly remain quite challenging, but as you have heard me say before, I am an optimist, and if I learned one thing from my years at Disney, it is that even in the face of uncertainty—perhaps especially in the face of uncertainty—our employees and Cast Members achieve the impossible,” the executive added.
You can read the full memo here.
Disney stock surges following Iger’s return.
As reported by Variety, Disney’s shares have climbed “more than 8 percent” in early trading on Monday.
MoffettNathanson analyst Michael Nathanson specifically praised Iger’s return, emphasizing that the longtime CEO is highly responsible for making Disney into what it is today.
“We applaud Disney’s board for the courage to make this change,” Nathanson wrote. “We have never hidden our affection for Mr. Iger and the job that he did in building Disney into the global powerhouse that it has become.”
This surge in stock comes at a good time for Disney. Just two weeks ago during its quarterly report, the house of mouse revealed their lowest share prices in over two years, including an operating loss of $1.47 billion in its streaming segment (Disney+, ESPN+, and Hulu). Beyond that, the company indicated that early 2023 projections would include higher declines than initially expected.
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