The Walt Disney Company released more information regarding its firing of now-former CEO Bob Chapek on Monday, November 21, and it appears that the board of directors did not find him in breach of his contract.
According to a report submitted to the United States Securities and Exchange Commission, Disney shared the following:
“The Company exercised its right to terminate without cause the employment of Robert A. Chapek as Chief Executive Officer. Effective as of the termination, Mr. Chapek also resigned from the Board pursuant to the terms of his employment agreement. In connection with his termination, Mr. Chapek will receive the separation benefits payable in accordance with the terms of his previously disclosed employment agreement. “
Chapek was fired by the same board of directors who only recently unanimously voted to extend his tenure as Disney CEO for another three years. Specifics of his severance package are still cloudy, but Chapek is estimated to walk away from The Walt Disney Company with a total sum of at least $23 million. Click the link below to read our coverage of that buyout’s breakdown.
Chapek was only the first Disney executive to be let go, though. Earlier this evening, it was announced that Kareem Daniel, the man he named distribution chairman, was also let go as Iger announced a reorganization of Disney’s Media and Entertainment Distribution.
Chapek’s sudden departure comes after unprecedented streaming losses caused unfavorable quarterly earnings sent the stock in freefall and fears of layoffs and hiring freezes took hold. Iger took control of the position immediately, and he will reprise his role until at least December 31, 2024.
We at Disney Fanatic will continue to update our readers on this changeup as more developments come to light.