Disney CEO Chapek gets new three-year contract

FLORIDA: The Walt Disney Co on Tuesday extended the contract of chief executive officer Bob Chapek for three years, giving a vote of confidence to a CEO who has battled controversy and a crippling pandemic.

Chapek has spearheaded the company’s transformation into a streaming powerhouse, helping the entertainment giant come closer to overtaking the existing No. 1 service, Netflix Inc. He also helped dig the company out of a hole caused by the Covid-19 pandemic, when much of Disney’s operations had to close.

“The board is committed to keeping Disney on the successful path it is on today, and Bob’s leadership is key to achieving that goal,” Susan Arnold, Disney’s chairman, said in a statement. “The board has full confidence in him and his leadership team.”

“Leading this great company is the honour of a lifetime, and I am grateful to the board for their support,” Chapek said in a statement.

Only the seventh CEO in Disney history, Chapek, 63, has had a nearly 30-year career at the company. He was thrown almost immediately into one of

‘‘ Leading this great company is the honour of a lifetime, and I am grateful to the board for their support.

BOB CHAPEK CEO of The Walt Disney Co

the darkest periods the company has faced when the outbreak of Covid-19 forced Disney to shut down its theme parks, studios and cruise ships. Revenue plunged by 42% in mid 2020.

Chapek quickly shifted his focus to Disney+, putting some of the company’s major new film titles on the streaming service without a normal theatrical run.

While that has helped the service reach 138 million subscribers, it sparked controversy among the agents and actors in Hollywood whose paycheques are tied to box-office sales.

Scarlett Johansson, the star of the Marvel film Black Widow, sued the company over the studio’s online release strategy. In response, Disney suggested she’d already been paid enough, generating a conversation about whether the comments were sexist. They later settled the dispute out of court.

More recently, Chapek has battled some of his own employees and the state of Florida, the home of major theme-park operations, over a new law restricting discussion of sexual identity in classrooms.

Chapek initially tried to steer clear of the controversy, saying in March that Disney wouldn’t take a position on the legislation.

But that triggered an employee uprising, and two days later he changed course and publicly stated that Disney would oppose the bill. The move put him in the crosshairs of Republican Governor Ron DeSantis, who led efforts to dissolve a special district in Florida that gave the company self-governance privileges.

Chapek also drew attacks from conservatives in recent days over Disney’s latest movie release Lightyear. The animated Pixar movie, which is a spinoff from the Toy Story films, includes a same-sex couple sharing a kiss.

The film hasn’t performed up to analysts’ estimates, sliding to fifth place at the North American box office over the weekend behind much older releases.

The company’s shift to streaming has led to internal turmoil as well.

Earlier this month, Chapek fired his top TV executive, Peter Rice, believing he wasn’t a team player. Disney’s board, which voted unanimously to extend his contract, used the moment to issue a rare statement of support for its embattled CEO.

As part of the contract extension running to July 1, 2025, Disney said in a filing that Chapek would get a longterm incentive award of not less than $20 million.

“The share of his long-term incentive compensation comprised of performance-based stock units will increase to 60%,’’ the filing said.