Inside $10M-a-year 'consultant' Bob Iger and Bob Chapek's frosty relationship amid Disney CEO drama
BURBANK, CALIFORNIA: The workers of The Walt Disney Company were taken by surprise when Bob Iger was restored to his original position as the CEO, and Bob Chapek was relieved of his duties. The shocking news came after a series of controversial that the company took under Chapek's supervision and the fact that the company lost more than a billion dollars in one quarter. With the share price at an all-time low, Iger was brought back. However, new filings have revealed that the former CEO was receiving a whopping $10 million a year in consultant fees.
The Financial Times explores the regulatory filing from 2021 revealing that the 71-year-old media pioneer was a regular recipient of installments of $500,000, starting the same year, and the contract was to stay valid for five years. The filing explained that Iger was expected to advise "on such matters as his successor as chief executive officer may request from time to time." The contract would allow Disney to "have access to Mr Iger’s unique skills, knowledge and experience with regard to the media and entertainment business." The Mouse House also took care of Iger's security bill which settled at $750,000.
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The outlet also explains that the contract came into effect at a time when Iger and Chapek were not on talking terms. Both parties never landed on the same page due to several issues. Their response to the company's plan of action for COVID and their political beliefs, having completely different advisory teams, were some of the issues between Iger and Chapek. The outlet claims that at a point in time Iger was upset with Chapek after his advice was not sought for key issues, particularly the company's controversial reaction to Florida's 'Don't Say Gay' bill.
Bob Iger received $10M to advise Bob Chapek
In an interview with Time, Abigail Disney, a major shareholder in the company and in relation to Walt Disney, Disney said, "He made a lot of rookie mistakes right out of the gate and then he made a whole series of rookie mistakes all along through his tenure. I don’t think he ever moved out of rookie mistake territory. The bottom line is that this was very poor succession planning and the onus of that has to land squarely on Bob Iger’s shoulders as well as the shoulders of the board of directors." Another insider, a former Disney executive told the outlet that Iger expected to be the coach but Chapek was not willing to play the same way.
The insider claims, "Iger never forgave Chapek for the way Chapek distanced himself and took control of the company. In some ways, Iger thought he would still be the coach. Chapek was not willing." It was previously reported that Chapek might walk away with a comfortable $23 million exit package. Meanwhile, Iger, who $45.9 million in his role as executive chairman, will now be getting $27 million, with $25 million of that represented in stock options. The change in the employment status was heavily influenced by the fact that the share prices of the company fell drastically - roughly 40 percent so far this year.