Disney’s board of directors voted on Tuesday to extend CEO Bob Chapek’s contract for an additional three years.
Chapek’s contract was set to expire in February 2023. Disney’s board of directors announced the new three-year contract extension, saying the decision was “unanimous.”
Chapek has delivered results that have surpassed Wall Street’s expectations with Disney+ growing at a much faster rate than expected. The streaming service added nearly 20 million new subscribers worldwide in Disney’s last two fiscal quarters, about 60 percent more than analysts had predicted.
“Disney was dealt a tough hand by the pandemic, yet with Bob at the helm, our businesses — from parks to streaming — not only weathered the storm, but emerged in a position of strength,” said Susan Arnold, chairman of the board, in a statement Tuesday.
She added: “In this important time of growth and transformation, 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. Bob is the right leader at the right time for The Walt Disney Company, and the Board has full confidence in him and his leadership team.”
Chapek is a 30-year veteran of Disney and previously oversaw the company’s lucrative theme parks business. His $2.5 million base salary will remain unchanged, however, his annual long-term incentive stock grant will be increased rom $15 million to $20 million.
“Leading this great company is the honor of a lifetime, and I am grateful to the Board for their support,” said Chapek. “I started at Disney almost 30 years ago, and today have the privilege of leading one of the world’s greatest, most dynamic companies, bringing joy to millions around the world.”