Disney Taps PepsiCo Veteran Hugh Johnston as CFO
Disney has recruited Hugh Johnston, a 34-year veteran of PepsiCo, as chief financial officer. He steps into the role left vacant after former CFO Christine McCarthy’s exit from the Mouse House was announced earlier this year.
Johnston assumes the Disney CFO job effective Dec. 4, reporting directly to CEO Bob Iger. Johnston currently is vice chairman and CFO of PepsiCo, where he has held numerous leadership positions with the multinational food and beverage giant — the U.S.’s largest food producer.
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As Disney’s CFO, Johnston will lead the company’s worldwide finance organization, which includes corporate real estate, corporate strategy and business development, enterprise controllership, enterprise technology, financial planning and analysis, global product and labor standards, global security, investor relations, risk management, tax and treasury.
Johnston, 62, takes the CFO reins as Disney is the midst of several major financial projects. Those include a multibillion-dollar deal to acquire Comcast’s 33% stake in Hulu; a strategic review of ESPN, including a potential spin-off or sale; and a 10-year capital-spending plan to more than double investment in Disney’s theme park and cruise business.
“Hugh’s well-earned reputation as one of the best CFOs in America and his wealth of leadership experience in both financial and operational roles overseeing a diverse portfolio of top global brands make him a perfect addition to Disney’s senior leadership team,” Iger said in a statement. “His expertise will serve Disney and its shareholders well as we continue the transformative work we are doing to drive growth and value creation.
Iger added, “I would also like to extend my sincere gratitude to Kevin Lansberry, who stepped into the CFO role on an interim basis earlier this year.” Lansberry, executive VP and CFO of Disney’s Parks, Experiences and Products unit, had temporarily taken over the role vacated by McCarthy as of July 1.
Johnston joined PepsiCo in 1987 and held a variety of senior roles before being named CFO in 2010. PepsiCo, which generated $86.4 billion in 2022 net revenue, owns brands including Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker and SodaStream. His prior positions at the company included EVP of global operations, SVP of transformation, SVP of mergers and acquisitions, and president of Pepsi-Cola North America. Johnston left PepsiCo in 1999 to serve as VP of retail at Merck & Co. before rejoining the food conglomerate in 2002.
Johnston currently serves as a member of the board and chair of the audit committee of Microsoft and as a member of the board and chair of the audit committee of HCA Healthcare. He is also a director for the economic think tank Peterson Institute for International Economics. Johnston holds a bachelor of science degree from Syracuse University and an MBA from the University of Chicago.
Under his employment agreement with Disney, Johnston will receive an annual rate of base salary of $2 million plus a $3 million one-time signing bonus, according to an SEC filing Monday. He also is eligible for an annual, performance-based bonus with a target value each year of not less than 200% of his annual base salary in effect at the end of the preceding fiscal year.
In addition, Johnston will be granted a long-term incentive award having a target value of 575% of his base salary for each fiscal year during the term of his employment. He also is set to receive a one-time award of long-term incentive stock units with a target award value of $14 million.
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