Disney CEO 35% raise

[cjsm&d]

If they add more rides they will need more CM's. Now refurbing Captain EO, they could've done without.

They squeezed more restaurants into World showcase. I keep wondering when they are going to put that large area behind Afica outpost to some really good use.

How about a Matterhorn type ride with a Switzerland pavilion?

 

[KellyNY]

I think that was my point.

I got it but I meant that even here we see changes.

 

[EastonCat]

All these folks are overpaid. But at least athletes and actors wages are based on the amount of money they generate for their sport or organization.

I work in the aerospace industry and make a very good salary compared to alot of folks up here in Maine, so I feel very grateful. However, I still get a little upset when they use the economy as an excuse to give us $300 a year cost of living wages, while my benefits (insurance) cost go up $1000.

Disney isn't the only company that the top gets the big bonus money every year, they all do it.

If the took only $5 mil bonuses instead of the $10+ mil they take, they could toss $1000 into the pocket of the folks who actually need it. BTW.... never gonna happen.

Disney has 149,000 employees. That's $149,000,000 you're talking about there. Even Bob is a few short on that check.

Are we all willing to give up free dining and discounts to better the standing of the cast members and those who actually need it? This is the number one driver of in-park experience decay right now, non Bob Iger's bonus.

If Iger could guarantee the kind of value creation up front simply by giving him the reins, he could have asked for twice as much.

I want a better experience, better compensation for cast members and cheaper healthcare too. Right now the market for Disney-related travel is attuned to people who want deals and frankly don't seem to be as considerate tourists as what I have been used to. This impacts service morale and service quality, particularly at dining venues. They aren't experienced Disneyphiles with high expectations, and this reduces the demand for investment in cast members and experienced management. I'm not saying they don't make a solid profit on these things, but making profits is what keeps Disney Parks open. The business of delight is a business. If we want to see different behaviors from our supplier, we need to exhibit different purchasing desires.

The literal free lunch at Disney is ruining the place. Iger has expressed personal desire to abolish it as it destroys the integrity of the resort. Those of you who are not prepared to buy your lunch need to stop complaining about the fact that Bob can buy a nicer one.

Don't get me started on healthcare costs. Fundamentally, it's the same problem. For a long time we thought it was a free lunch.

 

[EastonCat]

They squeezed more restaurants into World showcase. I keep wondering when they are going to put that large area behind Afica outpost to some really good use.

How about a Matterhorn type ride with a Switzerland pavilion?

That would be Awesome

 

[bytheblood]

I do not have any issues with a well-skilled person being paid for their attributes. I love Disney and am glad that it exists. Without the people in charge, it would not be what it is.

However, it is disgusting for this reason:

• Nobody needs all that money. Not in a life-time. There is a lot I could say about that piece, but I will stop there.
• He works with those that make the final decision to cut hundreds or thousands of jobs in one shot. For a person to take that big of a increase and cut a lot of employment, it only shows greed.
• I cannot see for one moment that he cares about people or really even the good of the company as a whole. The jobs he cuts are the people that service you and me on our vacation.

 

[larryz]

Everyone complains about CEO's making huge money but no one ever complains about professional athletes making millions or actors making millions. What's the difference?

That's because this isn't the "Complain about Athletes' and Actors' Salaries" forum.

If you don't like what they're being paid, do not patronize the venue and don't buy their stock.

Actually, the answer is BUY the stock ($39.63/sh just after 1 pm today and trending slightly up). That way, you have a stake in the company, and can go to the annual meeting and complain about how the workers are getting shafted while Iger gets mega-raises. I'm not saying it will do any good, but at least your conscience will be clear while you enjoy the annual dividend paid on your holdings...

 

[EastonCat]

I do not know, I just feel like he is not doing a good job. He may bring people in parks with all those discounts but how many will return, it is like pushing to limits.

He is not a fan either. Notice that the previous CFO is running the parks? They want financial integrity and experience integrity that can stand up to more disruptive swells of economic uncertainty.

I am concerned that they don't have the right creative leadership in place to make that a reality. But if they don't find a sustainable economic model other than price dumping the core experience, it's not going to matter.

As they transition out of an expansion phase they will hopefully refocus on service levels and experience erosion from things like discounting too steeply.

 

[KellyNY]

He is not a fan either. Notice that the previous CFO is running the parks? They want financial integrity and experience integrity that can stand up to more disruptive swells of economic uncertainty.

I am concerned that they don't have the right creative leadership in place to make that a reality. But if they don't find a sustainable economic model other than price dumping the core experience, it's not going to matter.

As they transition out of an expansion phase they will hopefully refocus on service levels and experience erosion from things like discounting too steeply.

But then they will face other problems as well. They created a failure scheme when they raised the prices and run discounts to create illusion that we have a deal, while we actually pay what they want us to pay but feel better. Now, it can not last forever. Even this year we see lower discounts already and will spend more on vacation. What will happen when they get rid of discounts all together. How many people will find reasonable to pay around $150 for value, when you can do a good moderate off site and rent a car and still pay less. People will stay off property, which many do already.

 

[A_Princess'_Daddy]

I understand the frustration of people making minimum wage, but the bottom line is that people are paid based on demand for their skills.
Anyone can sweep sidewalks or make burgers and fries or operate a Disney ride, so those positions aren't paid much.
Very few people have the skills and experience to successfully run a huge, complex, global corporation, so those who are able to do it are paid very highly.

Is Iger's compensation excessive?
I guess it depends on how you look at it. From a company perspective, they are going to pay him what they think he's worth to the company.

Under Iger's leadership, Disney's revenue was up 5% to 38 billion and their net income was up 20% to 4 billion. So one could argue that Iger's leadership helped bring in an extra 700 million in net income last year.

Exactly! I'm sorry, but all skill sets are not equal and Iger's ROI for Disney's shareholders is far, far, FAR greater than any individual CM's. Disney Corporation is increasingly more profitable and returning money to the shareholders. As CEO, that is his job, he's succeeding in it, and should be compensated accordingly.

 

[Tinkerbellie16]

I'm so lost - the link isn't posting. Did it get **** out??? Now I want to see what y'all are talking about!!

 

[Tinkerbellie16]

I looked on the net and found a few articles but not getting the 'i'm going to bring my mug' comment.

 

[maxiesmom]

I looked on the net and found a few articles but not getting the 'i'm going to bring my mug' comment.

As best as I can understand it, some people think it is ok to steal and break rules at WDW becasue the CEO got a huge raise.


I'm betting most of those posts are of the tounge in cheek kind. At least, I hope they are.

 

[EastonCat]

But then they will face other problems as well. They created a failure scheme when they raised the prices and run discounts to create illusion that we have a deal, while we actually pay what they want us to pay but feel better. Now, it can not last forever. Even this year we see lower discounts already and will spend more on vacation. What will happen when they get rid of discounts all together. How many people will find reasonable to pay around $150 for value, when you can do a good moderate off site and rent a car and still pay less. People will stay off property, which many do already.

It's as much about profit as it is about revenue.

They are managing to capacity now and reducing variable costs of consumable things they sell, like food, service and merch.

When a greater part of capacity can be filled at a higher price, it will be by people who will expect more value for their food, service and merch dollar. And they'll pay more to get it. Disney will adjust.

They have as much of a problem with people choosing to stay at the Waldorf instead of the Grand Floridian as they do people choosing they Bonnet Creek Wyndham over Port Orleans.

The Waldorf family represents a 2x profit opportunity. Probably a 3x return on capital infrastructure (think, cost of parks and keeping Lake Buena Vista running).

The cost increases at Disney have not been exorbitant as a ratio of cost of stay nor in line with apparent cost increases in consumer staples and energy. The discounts are significantly higher than the increases, and the average price point for the basis of a stay is down.

The upshot is that if they can fill their resort capacity (which they've been doing) they don't really care what people can find elsewhere. The integrated experience, location advantage, and end-to-end service that people can get on site comes with a value attached for many customers. The exodus is not forthcoming. This is why they need a bigger Magic Kingdom and more hotel rooms on site.

 

[RalphinSC]

As best as I can understand it, some people think it is ok to steal and break rules at WDW becasue the CEO got a huge raise.


I'm betting most of those posts are of the tounge in cheek kind. At least, I hope they are.

NEVER underestimate the Daft Brotherhood of the Ubiquitous Mugshare

 

[EastonCat]

As best as I can understand it, some people think it is ok to steal and break rules at WDW becasue the CEO got a huge raise.


I'm betting most of those posts are of the tounge in cheek kind. At least, I hope they are.

I'm taking one of the horses with me from King Stefan's Carousel. If he gets a raise next year, I'm kidnapping characters.

 

[TenderDonkey]

Wow lots of complaining. The man brought $ into the company so he gets compensated. It's all relative. If you want to send a message - STOP GOING. Stop buying Disney crap, stop with the websites.

 

[RalphinSC]

I'm taking one of the horses with me from King Stefan's Carousel. If he gets a raise next year, I'm kidnapping characters.

The force is strong in this one!

 

[maxiesmom]

I'm taking one of the horses with me from King Stefan's Carousel. If he gets a raise next year, I'm kidnapping characters.

Not Cindy's special horse I hope!!!

 

[KellyNY]

I'm taking one of the horses with me from King Stefan's Carousel. If he gets a raise next year, I'm kidnapping characters.

If we going down this road, can I have...Prince Caspian?

 

[ccudmore]

Some more detail on this:
- His base salary is $2 million/year
- Performance bonuses were up 45% to $13.5million (up from $9.3 million)
- Stock options awarded were valued at $11.8million
- Other compensation (such as personal use of corporate jet) was $798k.
- His total compensation was up 25% (not 35% as the OP stated)
- Stock was up 24% year-over-year, which is exceptional given the current economic climate. Bonus structures tied to stock price are very common and make sense. He brought the shareholders a 24% increase in their value, so they rewarded him by giving him a similar 25% bump in his pay. He doesn't mean he'll get this every year. His base salary is the only thing guaranteed.