Next CEO Compensation Plan Revealed: Disney's Revenue Grows While Profits Decline

Walt Disney Co. (DIS) has signed an offer letter confirming Josh D’Amaro as its next chief executive officer, effective March 18, 2026. His compensation package includes a base salary of $2.5 million per year, an annual performance bonus equal to 250 percent of base pay, and long-term equity awards valued in the tens of millions of dollars. Upon taking office, D’Amaro will join and be nominated to the board of directors. He will also receive a promotion-celebration equity grant vesting over three years, participate in the company’s standard executive benefits, and remain subject to Disney’s executive retirement and clawback policies.

In the same filing, Disney reported first-quarter results for the fiscal 2026 period ending December 27, 2025. Revenue rose 5 percent year-over-year to $26 billion, but operating income and diluted earnings per share declined by 9 percent and 4 percent, respectively. Higher taxes and capital expenditures led to a significant reduction in both operating cash flow and free cash flow. For the second quarter and full fiscal 2026, Disney projects its streaming subscription video-on-demand business will return to profitability, with growth in segment operating income and adjusted EPS. The company also forecasts approximately $19 billion in annual operating cash flow and $7 billion in share repurchases.

Earlier, in a February press release, Disney’s board announced that D’Amaro—who has led the Disney Experiences division—will officially become CEO following the March 18 annual shareholders’ meeting. Dana Walden, co-chair of Disney Entertainment, will be named president and chief creative officer. Current CEO Bob Iger will remain on the board as a senior advisor through the end of 2026. Disney’s latest quarterly report noted that box-office hits such as Zootopia 2 and Avatar: Fire & Ash, along with strong theme-park and cruise demand, supported results. However, the company also cautioned that a decline in overseas visitors to U.S. parks could slow future growth.

Through acquisitions of Pixar, Marvel, Lucasfilm and Fox, Disney has built a diversified portfolio that spans film and television, the Disney+ and Hulu streaming services, ESPN, theme parks—including Disneyland and Walt Disney World—and Disney Cruise Line. Facing intense competition in streaming and a slowdown in subscriber growth, Disney is pursuing greater cost efficiency and improved advertising and content monetization by fully integrating Disney+ and Hulu by 2026 and expanding its standalone ESPN streaming service.