Summary
The Walt Disney Company (DIS) has announced a significant change in its financial leadership, appointing Hugh F. Johnston as the new Senior Executive Vice President and Chief Financial Officer, effective December 4, 2023. Mr. Johnston brings extensive experience from his long tenure at PepsiCo, where he held various senior financial and operational roles, including CFO and Vice Chairman. This appointment signals a move towards experienced financial stewardship as Disney navigates its strategic priorities. Kevin Lansberry will transition from his interim CFO role back to leading finance for the Experiences segment. The company has outlined a competitive compensation package for Mr. Johnston, including a substantial base salary, performance-based bonuses, and significant long-term equity incentives, reflecting the importance of this key executive hire. The details of his employment agreement, including provisions for termination and severance, are also disclosed, providing transparency for investors regarding the terms of this critical leadership appointment.
Key Highlights
- 1Appointment of Hugh F. Johnston as new CFO, effective December 4, 2023, bringing extensive experience from PepsiCo.
- 2Kevin Lansberry will step down as Interim CFO and return to lead the finance function for Disney's Experiences segment.
- 3Johnston's employment agreement includes an annual base salary of $2,000,000.
- 4Eligibility for annual performance-based bonus with a target of not less than 200% of base salary.
- 5Significant long-term incentive awards, with a target value of 575% of base salary annually and a one-time $14,000,000 stock unit award.
- 6A one-time signing bonus of $3,000,000 is included, with repayment conditions if employment terminates within one year.
- 7Detailed provisions for termination for 'cause' or 'good reason' and associated severance benefits are outlined.