8-KLeadership ChangesExhibits & Filings

Walt Disney Co 8-K Report, Executive Changes (Dec 7, 2020)

Filed December 7, 2020For Securities:DIS

Summary

This 8-K filing from The Walt Disney Company announces an amendment to the employment agreement for Christine M. McCarthy, its Executive Vice President and Chief Financial Officer. The amendment extends her employment term by 18 months, from June 30, 2021, to December 31, 2022. This extension signals continued confidence in Ms. McCarthy's leadership and her role in navigating the company through its current strategic phase, especially within the dynamic entertainment and media landscape. Furthermore, the amendment reconfigures Ms. McCarthy's long-term equity incentive compensation. The new structure sets a target annual award value at $11,000,000, shifting from the previous structure that was tied to a percentage of her base salary. This change aims to better align her compensation with long-term company performance and shareholder value creation, a critical consideration for investors evaluating executive compensation practices and management stability.

Key Highlights

  • 1Amendment to Christine M. McCarthy's employment agreement extending her term to December 31, 2022.
  • 2Extension represents an 18-month continuation of her role as Executive Vice President and Chief Financial Officer.
  • 3New target for annual long-term equity incentive award set at $11,000,000.
  • 4Shift in equity incentive structure from a percentage of base salary to a fixed target value.
  • 5Indicates continued confidence in Ms. McCarthy's leadership and financial stewardship.
  • 6The amendment aims to enhance alignment of executive compensation with long-term company performance.

Frequently Asked Questions

The main purpose of this filing is to announce an amendment to the employment agreement of Christine M. McCarthy, the company's Chief Financial Officer, extending her tenure and adjusting her long-term equity incentive compensation structure.

The amendment extends her employment term to December 31, 2022, and sets her target annual long-term equity incentive award at $11,000,000, replacing the previous structure based on a percentage of her base salary.

The extension signifies continued confidence from The Walt Disney Company's leadership in Ms. McCarthy's ability to manage the company's financial strategy and operations, especially during a period of significant industry transformation.

The change from a percentage of base salary to a fixed target value is often implemented to provide clearer performance targets and better align executive compensation with long-term shareholder value creation and company performance goals.