It appears more details have emerged regarding Bob Iger’s new CEO contract with The Walt Disney Company.
Taking less than a year off after stepping down as Executive Chairman, Iger reportedly agreed to reprise his role as CEO immediately, less than three days after receiving the mysterious offer.
According to Disney Insider Scott Gustin, “Bob Iger will be paid an annual base salary of $1 million with a possible 100% annual bonus. He’ll also ‘be granted a long-term incentive award having a target value of $25 million’ for each fiscal year in the agreement.” The new term is set to end on New Year’s Eve, 2024.
NEW: Bob Iger will be paid an annual base salary of $1 million with a possible 100% annual bonus. He'll also "be granted a long-term incentive award having a target value of $25 million" for each fiscal year in the agreement. His term is currently set to end December 31, 2024.
— Scott Gustin (@ScottGustin) November 21, 2022
The official wording in the report from the United States Securities and Exchange Commission is the following:
“In connection with his appointment as Chief Executive Officer, Mr. Iger entered into an employment agreement with the Company (the “Employment Agreement”) providing that Mr. Iger’s annual rate of base salary is $1 million. The Employment Agreement provides that Mr. Iger is also eligible for an annual, performance-based bonus under the Company’s applicable annual incentive plan (currently, the Company’s Management Incentive Bonus Program) with a target equal to 100% of the annual base salary. The actual amount payable to Mr. Iger as an annual bonus will be dependent upon the achievement of performance objectives, which will be substantially the same as the objectives established under the plan for other executive officers of the Company. Depending on performance, the actual amount payable as an annual bonus to Mr. Iger may be less than, greater than or equal to the stated target bonus (and could be zero)…
“…For each fiscal year ended during the term of the Agreement, Mr. Iger will be granted a long-term incentive award having a target value of $25 million. Sixty percent (60%) of this target award value will be provided in the form of performance based restricted stock units and the remaining forty percent (40%) will be in the form of stock options. The other terms of these awards will be subject to substantially the same terms and conditions (except for (i) two year vesting and performance conditions for the performance-based stock units and (ii) full vesting of the stock option awards on December 31, 2024, if Mr. Iger remains in employment through such date).”
Originally appointed to the position in 2005, Bob Iger has already served over 15 years as CEO, making him one of the longest-tenured Chief Executives in the company’s history.
We at Disney Fanatic will continue to update our readers on this story as more developments continue to come to light.