The Walt Disney Company has grown to be one of the biggest media companies in the current landscape, which makes the organization's latest news all the more surprising. On Tuesday, it was formally announced that Bob Chapek will be taking over the role of Chief Executive Officer at the company effective immediately, with previous CEO Bob Iger moving to the role of Executive Chairman. According to The Hollywood Reporter's Alex Weprin, Chapeck's new contract will last until February 28, 2023, with a new annual salary increasing to $2.5 million. He will also reportedly have a target bonus of $7.5 million, with an annual long-term incentive grant of $15 million.
Details on Chapek's contract with Disney, which runs through February 2023: He will have a $2.5M salary, with a target bonus of $7.5M, and an annual long-term incentive grant of $15 million. https://t.co/Pim75HRTvh— Alex Weprin (@alexweprin) February 25, 2020
"With the successful launch of Disney's direct-to-consumer businesses and the integration of Twenty-First Century Fox well underway, I believe this is the optimal time to transition to a new CEO," Iger said in a statement. "I have the utmost confidence in Bob and look forward to working closely with him over the next 22 months as he assumes this new role and delves deeper into Disney's multifaceted global businesses and operations, while I continue to focus on the Company's creative endeavors."
Iger, whose tenure with Disney has been a topic of conversation over the past few years, will remain with the company until his contract inspires at the end of 2021.
Chapek has been working with Disney since 1993, and previously served as President of Walt Disney Studios Home Entertainment. Chapek was responsible for the concept for the "Disney vault", which led to some of the company's titles being unavailable to buy in a home release for several years, making their eventual return an actual event. He also helped transform the primary format of home entertainment from DVD to Blu-ray.
Chapek also served as President of Distribution for Walt Disney Studios, which saw him overseeing the distribution of feature films. Most recently, he has served as the Chairman of Disney Parks, Experiences, and Products since 2018.
Iger had previously confirmed that his contract with Disney will expire at the end of 2021, with himself and the company already thinking ahead about a potential successor.
"I've been engaged with the board for quite some time in some discussion about a succession, and they've been engaged in a succession process, and we continue to feel that they will be able to identify my successor on a timely enough basis so that this company has a smooth transition," Iger said in 2019. "I do want to say, by the way, since a lot has been said internally — and I think, probably, maybe felt now that we've shown this all to you — that what we're putting forward is an aggressive strategy, and that's very purposeful. Because we feel, obviously, that strategy is extremely important to us and we feel that if we're going to implement it, we've got to be very, very serious and be all in on it. And that's because we believe that that is the best way for this to succeed."
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