PDA

View Full Version : Eisner Not As rich as you might think...


bmoc_ny
10-17-2003, 08:09 AM
Rank Name Worth Age Residence Co.
294 Disney, Roy Edward 900 million 73 Los Angeles , CA Walt Disney

385 Eisner, Michael D 630 million 61 Los Angeles , CA Walt Disney
Copied from forbes 400 richest Americans And Mike is only 15 from the bottom.


Yes 600+ Million is alot of money, but if you read some of the posts on this board you would think he is getting a Billion $ a year plus 2 Billion in perks and extras. If you think running one of the bigest company's in the world is easy and stress free, lets just say most people could not do it for a day let alone for as many years as he has.

super name sales profits assets market value employees
rank rank rank rank rank
41 Walt 59 89 66 53 113.0
Disney

As you can see Disney ranks in the top 100 in the big corp. lists, and 41 over all, maybe he is worth it. Ok I guess it's time for you to start beating me up now..

DisneyKidds
10-17-2003, 08:24 AM
I won't beat you up, but I will say this............................

If ME's decisions in his personal finances have been as bad as those he has made in the recent past with Disney it is no wonder he is worth ONLY $630 mil despite the fact that he was/is one of the highest paid CEO's.

bmoc_ny
10-17-2003, 08:31 AM
457 is not really among the highest paid..........


rank name company total comp ($thou) 5 yr comp ($thou) mkt
457 Michael D Eisner Walt Disney 1,005 714,619 243.5 61 F

DisneyKidds
10-17-2003, 10:42 AM
457 is not really among the highest paid..........
I suppose by the Forbes rank you are right. Maybe you are on to something. AV, where is the disconnect, as in another htread you stated that........................
In one year alone Eisner's compensation was over three quarters of a billion dollars. Other years it's been only over half a billion, sometimes only a paltary quarter billion dollars. I've heard one guess that Eisner's total "compensation" from Disney is nearing $5 billion.
Forbes puts his 5 year number at roughly three quarters of a billion, and you have that in one year. Which year? Has ME taken a pay cut over the past 5?

Another Voice
10-17-2003, 10:51 AM
The last couple years he has, last year getting "only" a $5 million bonus. Most of his money has come in the form of stock options and grants - perhaps it's somewhat heartwarming to know he's trashed his own personal fortune along with that of Disney's. Eisner also receives a lot of "benefits" that don't fall into the realm of what you or I can get - housing allowances, loans at interesting interest rates, appearance fees, board member fees, travel, business participation arrangemements, percentages of deals (remember the big Jeffrey Katzenberg lawsuit where it turned out he got a piece of every Disney movie made?). That's why his compensation can only be estimated - and probably even he doesn't know what flows in an out. An there are a flock of lawyers and investment bankers out there with all kinds of interesting places to put money so that it's not part if his "net worth".

Hollywood is geared to making individuals rich, not companies. A lot of the old practices still linger around town.

DisneyKidds
10-17-2003, 11:12 AM
The last couple years he has, last year getting "only" a $5 million bonus. Most of his money has come in the form of stock options and grants
According to Forbes their numbers include compensation in the form of bonuses and stock. Seems there is still a disconnect?

bmoc_ny
10-17-2003, 12:39 PM
Originally posted by Another Voice
. Most of his money has come in the form of stock options and grants Eisner also receives a lot of "benefits" that don't fall into the realm of what you or I can get - housing allowances, loans at interesting interest rates, appearance fees, board member fees, travel, business participation arrangemements, percentages of deals (.

All of this is Part of total compensation and is laid out in disneys sharholder annual report. The exception might be travel which is usually paid out of pocket then reimbursed by the Company or on a Corp. credit card.

Bstanley
10-17-2003, 02:54 PM
The Big ME set the record in 1997 when he sold enough Disney stock to generate $565M in profit (the stock 'cost' him $130M and he sold it for $695M). This was just a few years after he made $202M profit on a stock sale in 1992. And according to Forbes he received more than $750 million in compensation from 1998 - 2002.

So for the years 1992-2002 he received at LEAST $1.5B in total compensation.

Now as to whether he took the $870M difference between the $1.5B that he received and the $630M he's got left and gave it to his favorite charity, bought internet stocks that crashed, or piled it in his backyard and set it on fire I don't know - BUT - Disney Corp gave it to him.

DancingBear
10-17-2003, 03:34 PM
According to the 2003 Proxy Statement, Eisner in 2002 received a salary of $1,000,000, and an award of $5,000,000 in stock units, which vest 50% when awarded and 50% two years thereafter. In 2002, ME received NO stock options, or long term incentive plan awards,

The huge dollar numbers have come when Eisner has cashed out stock options. His profit in those transactions represents the difference between the exercise price of those options, which is generally the price of the stock when the options were awarded, and the price of the stock when sold. Thus, he only made that money as a result of stock price increases.

Also, stock unit awards such as the $5,000,000 award described above are valued based on the stock price at the time they are awarded. Thus, if he was awarded stock when the price was high, a high compensation figure for those stock awards would be reported, but, of course, any stock he held on to has declined with everyone else's.

DisneyKidds
10-17-2003, 03:56 PM
This is worse than playing the attendance numbers game............................................:c razy:.

So Forbes didn't include the $5 mil in "stock units" in ME's '02 compensation number. Add those in and I imagine he'd move quite a bit higher than 457 on the '02 money list.

I'm also curious as to how Forbes measures net worth. Seems they don't include the value of unexercised stock options. Me thinks ME might be a little richer than Forbes would have us believe.

crystalb
10-18-2003, 07:07 AM
Just to throw a little mix in here -- Like all execs there are many hidden perks.
One Fortune 500 company I worked for the only thing the CEO paid for was the clothes on his back and some groceries.
Millions were spent redecorating condos, landscaping, and parties. Even the cable and fireplace cleaning were all company paid.
Just think how much $ we would have if all we paid for was whatever personal items and half of the food we bought.
And how do you get your non-college educated wife on a college board of directors? You donate millions of company money.

I also recall on another board a discussion between two WDW college program students.
I personally don't know how true this is -- but this is the rumors board ;) :
MRS ME owns the apartments the WDW CM are housed in.
This has been a few years ago, and I am going by memory. If I recall correctly, there were 8 students to an apartment, each paying $50 a week. And the state of FL matched that same amount for each housed CM.

Who has considered what SHE owns in all this Disney mix too?

Peter_noPan
10-18-2003, 09:53 AM
Maybe he would be worth a billion or two if he had done something about Disney stock price.

grinningghost
10-18-2003, 10:32 AM
He's still richer than me.;)

goofyguy1958
10-18-2003, 11:08 AM
Just a curiosity question; How many other Fortune 500 corporations would retain a CEO who has managed a stock that went from splitting in 1996 to selling at a post-split price of $36.00 and then quickly proceeding to plummet to as-low-as around $11 a share and never approaching within $10 of the post-split price of $36.00 again? I am not one of the ME bashers but there are not many other Fortune 500 corporations who would retain such a CEO.:confused:

bmoc_ny
10-18-2003, 05:52 PM
Originally posted by DisneyKidds
I'm also curious as to how Forbes measures net worth. Seems they don't include the value of unexercised stock options. Me thinks ME might be a little richer than Forbes would have us believe.

Stock options are not yours until you exercise(buy) them, they are just reserved for you at a set price.

DancingBear
10-19-2003, 08:05 AM
Given the decline in stock value, it's likely that many of Eisner's stock options have an exercise price above the current price, and thus have no value.

msdis
10-24-2003, 09:13 PM
And Roy Disney sold a hugh heap of Disney stock this year to purchase a cremation company. Somehow this seemed so sadly symbolic.:confused:

Dis shareholder: holding