8-KLeadership ChangesExhibits & Filings

Walt Disney Co 8-K Report, Executive Changes (Oct 11, 2019)

Filed October 11, 2019For Securities:DIS

Summary

This 8-K filing from The Walt Disney Company (DIS) on October 11, 2019, primarily details an amendment to the employment agreement for Alan N. Braverman, the Company's Senior Executive Vice President, General Counsel, and Secretary. The key changes involve an extension of his employment term and an increase in his compensation package. For investors, the most significant information is the extension of Mr. Braverman's employment agreement by one year, to December 31, 2021. Additionally, his annual base salary has been increased to $1,750,000, effective from September 26, 2019. The amendment also enhances his long-term equity incentive award, setting the target value at 350% of his base salary, up from the previous 300%. These adjustments signal continued confidence in Mr. Braverman's leadership and his integral role in the company's ongoing strategic initiatives, especially during a period of significant transition for Disney with the impending launch of Disney+.

Key Highlights

  • 1Amendment to Alan N. Braverman's employment agreement executed on October 8, 2019.
  • 2Employment term extended by one year, from December 31, 2020, to December 31, 2021.
  • 3Annual base salary increased to $1,750,000, effective September 26, 2019.
  • 4Annual base salary will be determined at the Company's discretion thereafter, but not less than $1,750,000.
  • 5Target long-term equity incentive award value increased to 350% of base salary (from 300%).
  • 6The amendment underscores continued executive commitment and compensation adjustments for a key officer.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose an amendment to the employment agreement of Alan N. Braverman, Senior Executive Vice President, General Counsel, and Secretary of The Walt Disney Company. The amendment includes an extension of his employment term and adjustments to his compensation.

The amendment increases Mr. Braverman's annual base salary to $1,750,000, effective September 26, 2019. It also raises his target long-term equity incentive award value to 350% of his base salary, up from the previous 300%.

Extending the employment of a key executive like the General Counsel and increasing compensation often signals the company's intent to retain critical talent, especially during periods of significant strategic shifts or major business initiatives, such as the upcoming launch of Disney+. It indicates confidence in his continued contribution to the company's legal and strategic direction.

While the increase in an executive's salary and incentive targets does represent an increase in compensation expense, it is generally a standard practice for retaining senior leadership. The direct financial impact on overall company earnings for shareholders is likely to be modest in the context of Disney's large revenue and operational scale. The primary implication for investors is the company's commitment to maintaining strong executive leadership.