Disney Extends Bob Chapek's Contract As CEO: What Mouse Shareholders Are Watching

Zinger Key Points
  • The Board of Directors announced it unanimously voted to extend Bob Chapek’s contract as CEO by three years.
  • Chapek's handling of items like LGBTQ+ issues and theme parks have been questioned by Disney fans and the public.
  • Disney shares are now down near 52-week lows and are down over 27% since Chapek took the CEO role.

Leading media company The Walt Disney Company DIS announced the extension of CEO Bob Chapek's contract Tuesday.

What Happened: As Benzinga previously reported, the Disney board met this week for an annual retreat.

Among the topics that were expected to discussed were a contract extension for Chapek, 61, who became the CEO of Disney in 2020.

The board announced Tuesday it unanimously voted to extend Chapek’s contract as CEO by three years. The contract, which was set to expire in February 2023, will now last until 2026.

“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,” Disney Chairman Susan Arnold said.

“The Board is committed to keeping Disney on the successful path it is on today.”

Chapek thanked the board in a statement and called being the CEO “the honor of a lifetime.”

Related Link: The Crisis At Disney: Part 1, Bob Chapek's Blunder Road

Why It’s Important: While the board has “full confidence” in Chapek moving forward, the same can’t be said for many Disney employees, theme park goers and Disney shareholders.

As previously discussed, the handling of Disney’s silence on LGBTQ+ issues and censorship in movies created a major public and internal crisis. 

A petition to replace Chapek has over 100,000 signatures and cites the lack of caring about theme park goers as a major concern, alleging a prioritization of profits over people.

Lastly, Disney shareholders previously saw strong returns as high growth names were flying and the company was looped in with streaming and technology names.

Disney shares are now down near 52-week lows and are down over 27% since Chapek took the CEO role.

DIS Price Action: Disney shared closed at $96.20 on Tuesday versus a range of $92.01 to $187.57.

Photo via Shutterstock. 

Posted In: Bob ChapekDisney WorldDisney+DisneylandMedia Companiesstreaming companiestheme parksEntertainmentNewsManagementGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.