Disney awarded Iger a $10 million consulting deal to advise the CEO

Walt Disney final yr awarded Bob Iger a $10 million deal to advise his successor Bob Chapek although the 2 executives on the media firm barely spoke.

Iger, who ran Disney for 15 years, rocked Hollywood by returning to the corporate this week as chief government after his most well-liked inheritor, Chapek, was ousted in an inside mutiny.

Iger’s reappointment ends an 11-month stint outdoors of Disney during which the previous government pursued different pursuits however stays loosely certain to his outdated employer by way of a “consulting companies” settlement.

Beneath phrases disclosed in Disney’s company filings, Iger was granted $2 million a yr by way of the tip of 2026 for recommendation “on such issues as his successor as chief government might every so often require.”

Disney stated the five-year consulting companies deal would permit the corporate “entry to Mr. Iger’s distinctive expertise, information and expertise with regard to the media and leisure enterprise”.

However by the point of his departure, Iger’s relationship with Chapek had soured and Iger expressed frustration together with his mates that his alternative had not requested for his recommendation at key moments.

A former Disney government who’s pleasant with Iger stated this included Disney’s sloppy response to Florida legal guidelines governing what lecturers can say on LGBT+ points.

“Iger by no means forgave Chapek for the best way Chapek distanced himself and took management of the corporate,” they stated. “In some methods, Iger thought he would nonetheless be a coach. Chapek would not wish to.”

Disney declined to touch upon companies offered by Iger after he left the corporate.

Whereas seven-figure consulting offers for former executives are uncommon in Europe, such preparations are utilized by some US corporations. Disney additionally agreed to proceed to pay for Iger’s safety prices as a former worker, which amounted to roughly $750,000 a yr.

Disney didn’t say whether or not the $2 million Iger requires a minimal quantity of consulting recommendation, however the contract contains month-to-month and annual “most time commitments” of unspecified length.

Iger’s return to Disney as chief government comes with a smaller pay package deal, which features a $1 million base wage, a $1 million goal bonus and a $25 million inventory award. This compares to a mean wage package deal of round $47 million over the previous 5 years as chief government.

“Principally he took a 40 per cent pay lower. . . to come back again,” stated Tom Gosling, an government fellow on the London Enterprise Faculty who based PwC’s government funds apply. “He has to like his job, love his firm, or see plenty of revenue within the inventory worth. Perhaps all three.”

Disney, in an organization submitting asserting a change in administration, stated Iger’s consulting preparations can be paused whereas he was chief government and would resume when he left the corporate.

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