Disney CEO Receives $13.9 Million Bonus for 2008

[crazy4wdw]

From the Wall Street Journal:

Disney CEO Receives $13.9 Million Bonus for 2008

By PETER SANDERS
Walt Disney Co. Chief Executive Robert Iger received $2 million salary and a $13.9 million bonus for fiscal 2008, and his overall compensation was up nearly 11% from 2007, according to a proxy statement filed by the company.

According to the filing, Mr. Iger's total compensation for 2008 was valued at $30.6 million, which was up from the year before, when his total compensation was valued around $27.7 million. Disney's fiscal year ended Sept. 27.

In the proxy, Disney also put up its entire slate of directors, including Apple Inc. Chief Executive Steve Jobs, for re-election at the company's annual meeting on March 10. Mr. Jobs, who is Disney's largest individual shareholder, earlier this week announced he was taking a six-month leave from his duties at Apple. Mr. Jobs holds 7.4% of Disney shares outstanding, but he does not draw compensation as a board member and is a non-independent director who does not serve on any committees, according to Disney officials.

Mr. Iger's base salary has remained unchanged since he was hired as CEO in 2005, and his 2008 bonus was up only slightly from last year. This year's bonus was $2.4 million less than he was entitled to; the company said Mr. Iger decided to forgo that money as a gesture of goodwill. That decision comes as senior executives of some large financial corporations, including Bank of America Corp., have decided to forego bonuses amid the 12-month-old recession and their own travails.

As part of his new five-year employment contract, signed last January, Mr. Iger received 3 million options at an exercise price of $29.51 per share that are scheduled to vest through 2013.

Shares of Burbank, Calif.,-based Disney, which have fared better than their peers in the media space, were up 10 cents to close at $21.46 in composite trading on the New York Stock Exchange on Friday. In September, the company reported net income of $4.42 billion on $37.8 billion in revenue. Sales were up nearly 7% from the year earlier, but net income dipped by about 5.5% on weakness at the company's broadcast and movie studio units, as well as a softening at the theme parks division towards the end of the fiscal year.

In addition to his salary and bonus, Mr. Iger received stock awards valued at $7.7 million; options awards valued at nearly $6 million; and $773,000 to cover expenses including air travel and security, up from $745,000 in 2007.

Chief Financial Officer Tom Staggs received a salary of nearly $1.9 million and was awarded a $4.1 million cash bonus -- down nearly 8% from last year -- and stock awards of more than $2.8 million. General Counsel Alan Braverman took in slightly more than $1 million in salary and a $3 million bonus.

 

[Peter Pirate 2]

There's a freakin' brilliant organization for you!

 

[Metro West]

There's a freakin' brilliant organization for you!

 

[daleswife]

Dang, how do I become Disney's CEO!?!?!?!?!?

 

[paulh]

Dang, how do I become Disney's CEO!?!?!?!?!?

Be the best mate of the last one
Paulh

 

[mitros]

Dang, how do I become Disney's CEO!?!?!?!?!?

Be a personal friend of Ei$ner..................

 

[mitros]

Good cripes, how much money does one person need???!
Take some of that $$$$ and put it into the parks, darn it! {you know I do not mean darn it.......}

 

[ShellyLynn3630]

During these times. We'll I guess I did do my part to help fund it.

 

[angwill]

Oh come on now he gave up 2.4 million he was entitled to as a goodwill gesture. What a great guy, huh?

 

[jade1]

Oh thats were the Fantasmic funding went.

 

[KYMickey]

If you really want to make a gesture of good will he would have not accepted any of the bonuses, I'm sure he could've survived on just his measly base salary of $2 million. We all wish we could have that problem. Funny how even though the parks continue to deteriorate his salary continues to increase!

 

[patsal]

Gosh, well as long as someone benefited from closing PI, the unbrideled imagination of a tethered balloon ride and of couse shortened hours, limited Fantasmic, early closing at EPCOT. At first I thought there was no benefit at all!

 

[wdwpins]

Germany has a law that says a company CEO can earn no more than 17 times the salary of his lowest-paid employee.

Do you think that would be a good idea for the US?

 

[wdwpins]

Germany has a law that says a company CEO can earn no more than 17 times the salary of his lowest-paid employee.

Do you think that would be a good idea for the US?

 

[drakester]

I know it's hard to realize in these times, but we do still have a free enterprise economy. I've haven't heard of Disney asking for a governmental bail out yet.

 

[jimmytammy]

Germany has a law that says a company CEO can earn no more than 17 times the salary of his lowest-paid employee.

Do you think that would be a good idea for the US?

Works for me, literally. But greed is the name of the game these days, unfortunately.

 

[jimmytammy]

Germany has a law that says a company CEO can earn no more than 17 times the salary of his lowest-paid employee.

Do you think that would be a good idea for the US?

Works for me, literally. And mine is basically the same as all my employees. But greed is the name of the game, unfortunately.

 

[angwill]

Drakester,
YET is the key word there and I wouldn't doubt if they eventually ask for a bail out too. Why not the porn industry tried and they are and entertainment corporation, right.

WDWpins,
I like that German law. However, I wonder if that law might be part of the reason why things are a lot more expensive in Germany than in the US. Could you imagine Eisner getting 17 times what the park employees probably make? How about he only gets 17 times the lowest salaried employee as his base pay too.

Ang

 

[JimB.]

Read between the lines folks. His SALARY & direct compensation is unchanged. The bulk of the (really BIG) number is in stock options.

Those options are priced at about $31/share. RIght now the price of Disney Stock is about $20/share. That means his stock options and awards are worthless. If he exercised them now he would LOSE about $10/share.

Germany has a law that says a company CEO can earn no more than 17 times the salary of his lowest-paid employee.

Yeah............... Not so much. German CEO's DO earn less than their American counterparts, about 2/3 less. Which, I DO believe is good. They make about 21 x their AVERAGE worker's salary, not the lowest paid. There is no legal requirement. And that is still about $8 mill/year when you toss in THEIR stock awards.

 

[Mickmse2002]

Germany has a law that says a company CEO can earn no more than 17 times the salary of his lowest-paid employee.

Do you think that would be a good idea for the US?

No.