Report: Chapek Walking Away From Disney with Over $20 Million

Bob Chapek’s side of his sudden departure from the top of The Walt Disney Company is still shrouded in some mystery, but we might know now what he’s walking out of the Mouse House with.

The news of Bob Iger’s initial successor came very shortly after his announced three-year extension–with a unanimous vote from the board of directors–and the sudden contract termination suggests that some form of severance package is included. The question is, how much?

Related: Disney Fans Get Into Intense Debate About Bob Chapek’s Exit

Bloomberg speculates,

“Bob Chapek leaves Walt Disney Co.’s top job with exit payments and benefits that could be worth more than $23 million. That’s without including the millions more he could collect in the coming years if the company’s share price recovers.

“The amount is based on calculations by Bloomberg News using disclosures from regulatory filings.”

Now, it is unlikely that Disney wrote Chapek a check for $23 million and sent him on his way. This is an estimated total sum derived from several source points based on contract terms and beneficial investments.

According to Bloomberg, Chapek’s current contract secures a salary for the entirety of his contract even if he is dismissed prematurely. That payout between now and mid-2025 is estimated to run up to $6.5 million.

Chapek’s decades-long tenure with Disney also entitles him to a pension, regardless of the terms of his departure, and as of October 2021, that pension was reportedly worth $16.9 million. He also has what’s called a “non-qualified deferred compensation plan,” which is essentially a super-sized 401(k) massive companies like Disney set up for their highest-earning employees. While the number has likely changed, Chapek’s plan reportedly had $8.5 million last year.

Then there are stock options and awards that he has acquired over the years. While it is unclear how these can come into play financially, Bloomberg states that if Chapek “exercised his in-the-money securities and immediately sold the shares at Friday’s U.S. market close, he would have collected around $3.5 million.” But most of his stock options require a rise in stock price for any value to come of them.

It should be mentioned at this time that these are estimated numbers. Disney has not yet disclosed the details of Chapek’s departure. It is also not uncommon for a Board of Directors to strike a compensation deal with the departing CEO, and if they can conclude that any breach of contract occurred, such as a breaking company policy or failing to fulfill the commitments of his agreement, payment of any kind could be declined.

Meanwhile, other reports show that this changeup in the CEO position was an extremely sudden change, with a turnaround time taking less than three days.

Read More: Report: Disney Secured Iger’s Return in Less Than 3 Days

We at Disney Fanatic will continue to update our readers on this story as more developments come to light.