The entertainment and business worlds were in for a big surprise Sunday night when it was announced that Bob Iger would return to The Walt Disney Company, with Iger replacing Bob Iger as CEO. Iger had previously retired in 2020, and while one would think it would require a large salary to bring back the CEO, Iger has already taken a significant salary cut to return to his old job. According to a report from diverseIger’s base salary is $1 million, and plus bonuses and a long-term incentive bonus, he can earn up to $27 million each year of his contract, which expires December 31, 2024.
That $27 million is nearly half of what he earned in 2021. The report notes that Iger’s total compensation for 2021 was $45.9 million. However, even with a reduction in his current pay for 2021, it’s still more than he earned in 2020, during which he earned $21 million. By comparison, Chapek’s total compensation for 2021 was $32.5 million.
Bob Iger’s Memo 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 confess a little surprise — that I am writing to you this evening with the news that I am returning to The Walt Disney Company as CEO,” Iger wrote. In his note to Disney staff members.
He then praised the company’s work throughout the pandemic, praising them for keeping the company afloat.
“I know this company has demanded a lot from you over the past three years, and those times certainly remain very challenging, but as you’ve heard me say before, I’m an optimist, and if I’ve learned one thing from my years at Disney, it’s that even in the face of uncertainty — maybe in some ways. Special in the face of uncertainty – our employees and team members make the impossible possible,” added the executive.
You can read the full note here.
Disney shares rise after Iger’s return.
As I mentioned diverseDisney shares rose “more than 8 percent” in early trading on Monday.
MoffettNathanson analyst Michael Nathanson specifically praised Iger’s return, emphasizing that the longtime CEO is largely responsible for making Disney what it is today.
“We applaud the Disney Board of Directors for the courage to make this change,” Nathanson wrote. “We have never hidden our affection for Mr. Iger and the work he has done in building Disney into the global powerhouse it has become.”
This stock uptick comes at an opportune time for Disney. Just two weeks ago during its quarterly report, the House of Mouse revealed its lowest stock price in more than two years, including an operating loss of $1.47 billion in its broadcast segment (Disney+, ESPN+, and Hulu). Moreover, the company indicated that early projections for 2023 will include higher declines than initially expected.
What do you think about the return of Bob Iger as CEO of Disney? Let us know your thoughts in the comments section!
.
[ad_2]
