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.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.