Disney’s board votes to extend CEO Bob Chapek’s contract by three years
Bob Chapek, Disney
Jeff Gritchen | MediaNews Group | Orange County Sign up through Getty Images
Disney has extended CEO Bob Chapek’s contract for another three years, the company announced on Tuesday.
Chapek’s contract was due to expire in February 2023, three years after he unexpectedly took the reins from Bob Iger. The board, which met Tuesday in Florida, voted unanimously to extend Chapek̵[ads1]7;s agreement.
“Disney got a tough hand from the pandemic, but with Bob at the helm, our businesses – from parks to streaming – not only managed the storm, but also came into a position of strength,” said Susan Arnold, chairman, 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 today, and Bob’s leadership is the key to achieving that goal. Bob is the right leader at the right time for The Walt Disney Company and the board have full confidence in him and his management team. “
Chapek has experienced its share of difficulties during its short period. Disney’s share, which was unchanged in after-sales, is down around 38% this year at Tuesday’s closing time.
Chapek was also at the center of a dispute between Disney and Florida Gov. Ron DeSantis over comments on the state’s HB 1557 law, called the “Don’t Say Gay” bill. The feud led DeSantis to gather Republican lawmakers to repeal Disney’s Reedy Creek Special District, which it has held for decades.
Earlier this month, Chapek made headlines to fire Peter Rice, Disney’s top TV content manager. The board said at the time that Chapek had his full support.
The time for Disney’s transition from Iger to Chapek came just weeks before the coronavirus pandemic forced various facets of the entertainment industry to close, including cinemas and amusement parks.
With no revenue from these divisions, Chapek gathered around the company’s new Disney + streaming service. The success of programs like “The Mandalorian” had made the platform popular with consumers, and Chapek stuck to the company’s goal of reaching 230 million to 260 million Disney + subscribers by 2024.
By the end of Disney’s second quarter, the service had more than 137.7 million subscribers.
Chapek, 63, has worked for the Walt Disney Company for nearly 30 years and is its seventh CEO. Previously, he was chairman of Disney’s Department of Parks, Adventures and Products.
