Disney’s $27 million retention package gives its second-in-command a larger base salary than the company’s chief executive
Disney’s Unique Approach to Leadership Transition
Disney’s strategy following its CEO succession goes beyond simply naming a new leader—it’s about transforming a potential competitor into a highly motivated ally.
While it’s common for those who don’t secure the top spot in corporate succession to exit the company, Disney took a different route. Instead, the runner-up was retained, thanks to a thoughtfully designed compensation plan.
Securing Key Talent with Strategic Compensation
After appointing Josh D’Amaro as the next CEO, Disney acted swiftly to ensure Dana Walden—widely considered a strong contender for the role—remained with the company rather than becoming a sought-after executive in the entertainment industry. To achieve this, Disney offered Walden a retention package that is notable for its generosity: her base salary surpasses that of her new boss, a rare occurrence in the corporate world. This move is intended to align Walden’s interests closely with D’Amaro’s leadership.
According to Disney’s SEC filings from February 2026, Walden was granted a one-time stock award valued at $5.26 million, likely as compensation for not being chosen as CEO. Her new base salary stands at $3.75 million—about 50% higher than D’Amaro’s starting salary of $2.5 million—and is heavily weighted toward guaranteed cash. In contrast, D’Amaro’s pay package emphasizes long-term, performance-based stock incentives.
Excluding the one-off grant, Walden’s annual target compensation—including a $7.5 million bonus and $15.75 million in stock awards—totals approximately $27 million. For comparison, D’Amaro’s annual target compensation is around $35 million, not counting his separate one-time equity award of $9.705 million.
Managing Risk and Retaining Creative Leadership
Why invest so heavily in an executive who didn’t become CEO? For Disney, it’s a matter of mitigating risk. The company remembers the impact of Jeffrey Katzenberg’s departure in 1994, when he left after losing a succession contest and went on to co-found DreamWorks, taking valuable talent with him. With competitors like Netflix and Amazon always ready to recruit proven leaders, Disney is determined not to repeat past mistakes.
Walden’s new responsibilities now resemble those of a “CEO-in-waiting.” Her expanded role covers not only television and streaming, but also film, giving her significant influence over Disney’s creative direction. With a contract extending through March 2030, Walden is positioned as a central figure in shaping the company’s content strategy.
Additionally, this compensation package sends a reassuring message to investors. Some stakeholders were concerned about a leader from the parks and experiences division overseeing a company rooted in content creation. By securing Walden’s continued involvement, Disney signals that its creative leadership remains strong even as D’Amaro steers the company’s future.
Investing in Loyalty and Stability
Ultimately, Disney’s investment in Walden is about more than her individual contributions—it’s about fostering loyalty and ensuring organizational stability by keeping a potential rival within the company, rather than allowing her to join a competitor.
Editor’s Note: This newsletter will not be published on Feb. 16 in observance of Presidents’ Day and will resume on Feb. 23.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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