Walt Disney Co (NYSE:DIS) reportedly gave Bob Iger a $10 million deal to advise former CEO Bob Chapek despite the frosty relationship between the two.
What Happened: Iger, who made his comeback as CEO this week, was granted $2 million a year until the end of 2026 for advice "on such matters as his successor as the chief executive officer may request from time to time," reported Financial Times, citing terms disclosed in Disney's corporate filings.
The five-year deal was to give Chapek, who was ousted from his post this week, access to Iger's "unique skills, knowledge and experience" in relation to media and entertainment businesses, according to the report.
Disney also reportedly agreed to continue paying the security costs for Iger which ran up to $750,000 a year.
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Why It Matters: There is no clarity on whether a minimum amount of consultancy advice was required but the contract does include monthly and yearly "maximum time commitments," noted FT.
Chapek and Iger's relationship had reportedly declined to such levels that the latter told his friends that his advice was not sought by his successor at key moments.
A Disney executive friendly with Iger said this included the company's response to a Florida law that regulates what teachers can tell students on LGBT+ issues, according to FT.
Disney did not immediately respond to Benzinga's request for comment on the development.
The executive said that Iger did not forgive Chapek for distancing himself and said, "In some ways, Iger thought he would still be the coach. Chapek was not willing."
Iger will draw an annual base salary of $1 million and an annual incentive bonus of a million dollars for a contract that runs through Dec. 2024. He is also eligible for equity awards of up to $25 million.