Final 12 months, Walt Disney awarded Bob Iger a $10 million contract to advise his successor Bob Chapek, when the 2 media firm executives barely spoke to one another.
Iger, who led Disney for 15 years, rocked Hollywood by returning to the corporate this week as chief government after his chosen inheritor, Chapek, was ousted in an inner revolt.
Iger’s reappointment ended an 11-month stint exterior Disney the place the previous government pursued different pursuits however remained loosely tied to his former employer via a “consulting providers” deal.
Beneath phrases disclosed in Disney’s company filings, Iger was given $2 million a 12 months via the tip of 2026 for recommendation “on issues his successor as chief government might request infrequently.” “.
Disney mentioned the five-year consulting providers settlement would enable the corporate “to have entry to Mr. Iger’s distinctive expertise, data and expertise in media and leisure.”
However by the point he left, Iger’s relationship with Chapek had deteriorated badly, and Iger expressed his frustration to his associates that his recommendation had not been sought by his successor at key instances.
A former Disney government good friend of Iger mentioned that features Disney’s botched response to a Florida legislation that regulates what lecturers can say about LGBT+ points.
“Iger by no means forgave Chapek for the best way Chapek distanced himself and took management of the enterprise,” they mentioned. “In a method, Iger thought he would all the time be the coach. Chapek was unwilling.
Disney declined to touch upon the providers supplied by Iger after he left the corporate.
Whereas seven-figure consultancy agreements for former executives are uncommon in Europe, such agreements are utilized by some US firms. Disney additionally agreed to proceed paying safety prices for Iger as a former worker, which amounted to roughly $750,000 per 12 months.
Disney did not say whether or not Iger’s $2 million required a minimal of consultancy, however the contract contains month-to-month and annual indefinite “most time period commitments.”
Iger’s return to Disney as chief government got here on a slimmed-down wage bundle, which features a base wage of $1 million, a goal bonus of $1 million and inventory value $1 million. $25 million. That compares to a median wage of round $47 million over his final 5 years as chief government.
“Basically he is taken a 40% pay minimize … to come back again,” mentioned Tom Gosling, an government fellow at London Enterprise Faculty who established PwC’s government compensation observe. job, love the corporate, or see a whole lot of profit within the inventory value. Perhaps all three.
Disney, in company filings saying the administration change, mentioned Iger’s consulting offers can be suspended whereas he served as chief government and would resume when he left the corporate.
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