Disney awarded Iger $10mn consultancy deal to advise CEO

Last year, Walt Disney awarded Bob Iger a $10 million contract to advise his successor Bob Chapek, when the two media company executives barely spoke to each other.

Iger, who led Disney for 15 years, shook up Hollywood by returning to the company as chief executive this week after his chosen heir Chapek was ousted in an internal revolt.

Iger’s reappointment ended an 11-month stint outside Disney where the former executive pursued other interests but remained loosely tied to his former employer through a “consulting services” deal.

Under terms disclosed in Disney’s corporate filings, Iger was given $2 million a year through the end of 2026 for advice “on matters his successor as chief executive may request from time to time.” “.

Disney said the five-year consulting services agreement would allow the company “to have access to Mr. Iger’s unique skills, knowledge and experience in media and entertainment.”

But by the time he left, Iger’s relationship with Chapek had deteriorated badly, and Iger expressed his frustration to his friends that his advice had not been sought by his successor at key times.

A former Disney executive friend of Iger said that includes Disney’s botched response to a Florida law that regulates what teachers can say about LGBT+ issues.

“Iger never forgave Chapek for the way Chapek distanced himself and took control of the business,” they said. “In a way, Iger thought he would always be the coach. Chapek was unwilling.

Disney declined to comment on the services provided by Iger after he left the company.

While seven-figure consultancy agreements for former executives are rare in Europe, such agreements are used by some US companies. Disney also agreed to continue paying security costs for Iger as a former employee, which amounted to approximately $750,000 per year.

Disney didn’t say whether Iger’s $2 million required minimal counseling, but the contract includes indefinite monthly and annual “maximum term commitments.”

Iger’s return to Disney as chief executive came on a slimmed-down salary package, which includes a base salary of $1 million, a target bonus of $1 million and stock awards. worth $25 million. That compares to an average salary of around $47 million over his last five years as chief executive.

“Essentially he’s taken a 40% pay cut … to come back,” said Tom Gosling, an executive fellow at London Business School who established PwC’s executive compensation practice. work, love the company, or see a lot of benefit in the stock price. Maybe all three.

Disney, in corporate filings announcing the change in leadership, said Iger’s consulting deals would be suspended while he served as chief executive and would resume when he left the company.

Leave a Comment

Your email address will not be published. Required fields are marked *