Bob Iger returns to Disney with a hefty payment package

as the largest entertainment company The Walt Disney Company in the world. (DIS)- Get Free Report It is accompanied by high executive compensation or, if he resigns, retirement benefits. During his 15 years leading the company, CEO Bob Iger net worth About $350 million.

Late Sunday night, Disney rocked both fans and shareholders. announced Iger would retire and replace his successor, Bob Chapek.

While Chapek headed Disney, tumultuous times As a result of coronavirus-related park closures and political struggles with Florida Governor Ron DeSantis, the board ultimately decided that Iger was the best choice to lead the company “at this critical time.” I decided that it was.

How long do you have to work to earn Iger’s annual income?

Iger’s position includes an annual salary of $1 million, a bonus of $1 million and stock options of $25 million, according to documents filed with the Securities and Exchange Commission on Monday. His two-year contract ending on December 31, 2024 is coming to an end.

This is money that even many wealthy people will never see, but it’s actually less than Iger was making before he retired. $47.5 million $65.6 million in 2019 and $65.6 million in 2018.

Also, Chapek won’t leave the role without a big payout. calculation At least $23 million will be paid out, according to Bloomberg News. This includes $16.9 million in annuities and $3.5 million in stock options.

If Disney’s stock price rises during Mr. Iger’s tenure, Mr. Chapek could become a very wealthy shareholder. Disney’s shares fell on Monday, dropping 1.4% to $96.21. The stock is down about 38% so far this year.

Iger’s salary, which is lower than in 2018 and 2019, reflects the pay equity pressures facing the company.

In 2019, a tweet by Walt Disney’s grandmother, Abigail Disney, went viral after she criticized the $65.6 million salary Iger received.

What will we see in Iger Era 2.0?

“This growing inequality affects every corner of American life.” Abigail Disney I have written A Washington Post opinion piece referred to Equilar’s calculation that Iger made 1,424 times the average Disney employee wage. A very few, very wealthy people own a lot of it, and the majority have relatively little.”

At the time, The Walt Disney Company justified the salary by pointing to Iger’s leadership. most successful CEO He oversaw the acquisitions of Pixar, Marvel and Lucasfilm, and made history with 21st Century Fox after completing its $71 billion deal in 2019.

Chapek too foretold However, due to Iger’s past track record, many shareholders have high expectations of him, even if he steps in when the company is in a very different place than when he left.

“There are still many questions in the minds of investors,” said Ed Ponce wrote Iger is back on TheStreet’s RealMoney. “Will Iger revamp Disney+? The Disney streaming division, which includes Disney+, ESPN+ and Hulu, saw him lose $1.5 billion last quarter. How do you prepare for the possibilities?” recession In 2023? What is the optimal mix and amount of content when it comes to franchises like Marvel and Star Wars?”