PanamaTimes

Monday, Feb 26, 2024

Bob Iger

Bob Iger was on a $10 million consultancy deal at Disney - to advise the CEO he eventually replaced

Before his return to Disney, Bob Iger reportedly had a $10 million deal to advise his successor Bob Chapek, despite the two executives barely speaking 

Before Bob Iger returned to the helm of Disney, the entertainment giant signed him to a $10 million deal to advise his successor Bob Chapek—even though the two executives were hardly speaking.  

Iger, who rejoined the company as CEO last week after Chapek’s ousting, was on a $2 million a year contract until 2026 to advise “on such matters as his successor as chief executive officer may request from time to time,” according to terms disclosed in Disney corporate filings reported by the Financial Times. The agreement came into force when Iger left his role as executive chairman at the end of 2021.

The much-loved Iger had hand-picked Chapek to take over the House of Mouse after he had led the company for 15 years. But once Chapek took over as CEO of Disney in February 2020, his relationship with Iger soured rapidly, and the ballooning losses of Disney’s streaming Direct-To-Consumer (DTC) division, which includedDisney+, Hulu and ESPN+, eventually led to calls for Chapek’s head.

According to Disney’s SEC filing, the five-year consulting deal enabled the company and Chapek “to have access to Mr. Iger’s unique skills, knowledge and experience with regard to the media and entertainment business” and included monthly and yearly “maximum time commitments” of unspecified length. Disney was also paying Iger’s security costs as an ex-employee which totaled around $750,000 a year, the FT reported.

Iger’s return rocked Hollywood and sent shares in Disney surging more than 6% after the announcement was made. Disney did not respond to Fortune‘s request for comment.


How the relationship between the Bobs fell apart

Iger and Chapek’s relationship began to deteriorate soon after Chapek took the top position at Disney. According to a CNBC report, the relationship between the outgoing and incoming Disney leaders soured after Iger announced he wasn’t going to fully depart from the company in March 2020, in order to help it weather the pandemic.

Chapek was said to be “furious” with Iger sticking around. Having expressed little desire for help, Chapek felt that Iger was postponing his retirement once again and reducing him to second-in-command.

Tensions within Disney were further exacerbated in Marck 2022 when Chapek stayed quiet over Florida’s “Don’t Say Gay” bill — the legislation that would prohibit classroom discussion of sexual orientation or gender identity in primary schools in the state where Chapek had just ordered 2,000 of its Disney employees to move to take advantage of lucrative tax credits.

Chapek later apologized for his muted response on the bill, but it marked a strong deviation away from Iger’s style, where most of Disney’s stances on political and social issues would come directly from him.

Chapek then decided to strategically reorganize the company’s media and entertainment businesses by stripping budget power from content creators and instead centralizing it under his right-hand man, former Goldman Sachs banker Kareem Daniel. This move took away the profit-and-loss power from many of Disney’s veteran division leaders and consolidated that control under Daniel, a shift that was met with strong backlash from longtime Disney employees.

Another nail in Chapek’s coffin came when he abruptly fired Peter Rice — the head of the company’s TV division — for being an ill fit with Disney’s corporate culture. While Disney’s board threw its support behind Chapek and his ousting of Rice, staffers inside Disney said the move tanked morale and further divided the CEO from Disney veterans and Iger.

As the tensions surrounding Chapek increased, the relationship between the Bobs got worse, the FT reported, with Iger reportedly complaining to friends that his advice was not sought by his successor at key moments.

“Iger never forgave Chapek for the way Chapek distanced himself and took control of the company,” a Disney executive told the FT. “In some ways, Iger thought he would still be the coach. Chapek was not willing.”



Iger’s return after a little time off

Faith in Chapek’s leadership collapsed when the CEO announced earlier this month that “tough and uncomfortable decisions”, including staff cuts, were coming to the company after its Direct-To-Consumer division reported that losses more than doubled to $4 billion for the fiscal year ending Oct. 1.

Iger then received a call on Nov. 18 from board chair Susan Arnold and two days later agreed to return to Disney for another two years to steer the ship back on course.

Iger is returning to Disney on a slimmed-down pay package, which includes a $1 million base salary, a $1 million target bonus, and stock awards valued at $25 million. This compares to an average pay package of around $47 million during his last five years as chief executive, the FT reported.

“Essentially he’s taken a pay cut of 40%. . . to come back,” Tom Gosling, an executive fellow at the London Business School who established PwC’s executive pay practice, told the FT. “He must love the job, love the company, or see a lot of upside in the share price. Maybe all three.”

The first moves taken by Iger after being reinstated as CEO this week were to walk back Chapek’s strategy, return profit and loss power to content creators, and fire Kareem Daniel.

Newsletter

Related Articles

PanamaTimes
Apple warns against drying iPhones with rice
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Global Law Enforcement Dismantles Lockbit Ransomware Operation
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
The President of Argentina Javier Mile does not fly private, he flies commercial, with the citizens he represents. And they LOVE him for it.
Bitcoin Reaches $50,000 for First Time in Over Two Years
Belo Horizonte: Brazil's Rising Carnival Hotspot for 2024
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Tucker’s interview with Putin is over 50M views on X within the first 5 hours.
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
President Nayib Bukele has proudly announced El Salvador's remarkable achievement of becoming the safest nation in the Western Hemisphere.
Former Chilean President Sebastian Piñera Dies in Helicopter Crash
This farmer seems to understand science a bit more than the event organizer, Klaus Schwab.
Facebook turns 20: From Mark Zuckerberg's dormitory to a $1trn company
The Coolest Dictator in the World" on the Path to Victory in El Salvador
Macron, France and fake news
Indian-Origin Man 'King' Arrested For Smuggling $16 Million Drugs Into US
Can someone teach Americans that not every person with slanted eyes is Chinese?
Europe's Farmers Feeding the People, Protesting Against Politicians Who Do Nothing for Their Country and Serve Only Themselves at Taxpayers' Expense
Paris Restaurant That Inspired 'Ratatouille' Loses $1.6 Million Worth Of Wine
Brazilian Police Investigate Bolsonaro's Son for Alleged Illegal Spying
Police in Brazil Raid Residence of Bolsonaro Associate Over Allegations of Illegal Spying
Border Dispute Escalates as Texas Governor Vows Increased Razor Wire
OpenAI Enhances ChatGPT-4 Model, Potentially Addressing AI "Laziness" Issue
The NSA finally acknowledges spying on Americans by acquiring sensitive data
Report Reveals Toxic Telegram Group Generating X-Rated AI-Generated Fake Images of Taylor Swift
US Border Patrol States 'No Plans' to Remove Razor Wire Installed in Texas
Bitcoin Experiences Approximately 20% Decline in Value
Klaus Schwab recently appointed himself as the Earth's "trustee of the future."
DeSantis Drops Out, Endorses Trump.
Nikki Haley said former President Trump is "just not at the same level" of mental fitness as he was while president in 2016.
Residents of a southern Mexican town set the government palace on fire in response to the police killing of a young man
Samsung Launches AI-Driven Galaxy S24, Ushering in New Smartphone Era
Judge Questions SEC's Regulatory Overreach in Coinbase Lawsuit
The Ecuador prosecutor who was investigating the television studio attack, has been assassinated.
Is artificial intelligence the solution to cyber security threats?
Vivek Ramaswamy suspends his US election campaign and endorses Trump.
Viral Satire: A Staged Satirical Clip Mistaken as Real Footage from the 2024 World Economic Forum in Davos
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Ecuador Reports 178 Hostages in Prison Gang Standoff
The Startling Cuban Espionage Case That Has Rattled the US Government
Two Armed Men in Ecuador, Dressed as Batman and The Joker Storm the Streets.
Armed Gang Raids Ecuadorian TV Station Following State of Emergency Declaration
Anti-Democratic Canada: Journalist Arrested for Questioning Canadian Finance Minister on Support of Terrorist Group
Ecuador's 'Most-Wanted' Criminal Vanishes from Prison
Mexican Cartel Supplied Wi-Fi to Locals Under Threat of Fatal Consequences for Non-Compliance
Border Surge Leads to Over 11,000 Migrants Waiting in Northern Mexico
Outsider Candidates Triumph in Latin American Elections
As Argentina Goes to the Polls, Will the Proposal to Replace the Peso with the Dollar Secure Votes?
Fatal Shark Attack Claims Life of Boston Woman Paddleboarding Near Bahamas Resort, According to Police
×