Walt Disney CEO Bob Iger Paid $46.5 Million in 2014

[GAN]

So that makes it OK? See my prior post. I don't care if shareholders are fine with it. I understand why they are.

Just for the record, I'm actually not fine with it. That is money that could be re-invested back into the Company, which in turn could create greater growth ...and profit for me. Now, my vote doesn't "count" but hers does....

http://www.fool.com/investing/gener...r-guess-the-one-woman-who-owns-more-of-d.aspx

 

[buzzCMlightyear]

They got the raise they negotiated for last year. In addition, they participate in a stock plan.

The ESPP was actually canceled before the contract was finished.

 

[lockedoutlogic]

The ESPP was actually canceled before the contract was finished.

At current prices... That's a joke for most hourlies anyway (and most salaried too)

Remember that Florida is a "right to work" state also...
Which means you have the "right" to have your employer tell you how it's gonna be...which is the case 99.99787554% of the time at wdw.

 

[OKW Lover]

At current prices... That's a joke for most hourlies anyway (and most salaried too)

Remember that Florida is a "right to work" state also...
Which means you have the "right" to have your employer tell you how it's gonna be...which is the case 99.99787554% of the time at wdw.

Right. And you also have the right to go work for somebody else.

 

[lockedoutlogic]

Right. And you also have the right to go work for somebody else.

When didnt you?

That's the theory...

But as a descendant of the rust belt...that premise is as thinly veiled as cellophane..

It's prohibits effective organization...which in fairness does lead to alot of evils...but also was a valuable turning point in the history of our country and allowed for the greatest century of prosperity and accomplishment by a single state in the history of our planet...

Not a coincidence in any way.

How you feeling about this century so far?

 

[GAN]

Right. And you also have the right to go work for somebody else.

Hmmm ...you make that sound so easy! So let's crap all over our employees, because if they don't like it they can just go work somewhere else. I hope my employer isn't reading this thread! After all, it's that belief that made America great ...isn't it? Because without all these executives "earning" million dollar bonuses, we'd never be where we are today ....or would we?

 

[Yellowstonetim]

Hmmm ...you make that sound so easy! So let's crap all over our employees, because if they don't like it they can just go work somewhere else. I hope my employer isn't reading this thread! After all, it's that belief that made America great ...isn't it? Because without all these executives "earning" million dollar bonuses, we'd never be where we are today ....or would we?

No we wouldn't be where we are today. Freedom and capitalism together, governed by reasonable laws, is what made America great. Yes, laws need to be adjusted or new ones made sometimes, but in general the system worked well.

So that makes it OK? See my prior post. I don't care if shareholders are fine with it. I understand why they are. I am not fine with it as a customer. Since it is my money and not the shareholders money that pays his high salary, I have chosen not to pay into his high salary any more. Since my enjoyment of Disney has fallen, he isn't doing a good enough job to earn that high salary, in my opinion. Since it is my money that I spend at WDW, my opinion is the only one that matters to me. Not the shareholder and certainly not the Board.

As a customer you only have a say in your purchase, it is not your money after you buy your product, it is the stockholders money. It is, in a sense, none of your business. As a customer you exchanged your money for a product, not an interest in the company. The stockholders, on the other hand, exchanged their money for an interest in the company. Now you are welcome as a customer to judge the value of what you purchase and choose whether or not to purchase, but you get no say in setting the price or employee pay. Part of business is to make decisions that attract one customer and repel another. That is life, and it is business. The bottom line of Disney is not to do whatever you want. The business is to make money by doing what a large number of their customers want at the highest price for the lowest cost. A simple formula that becomes very complex in real life.

 

[OKW Lover]

As a customer you only have a say in your purchase, it is not your money after you buy your product, it is the stockholders money. It is, in a sense, none of your business. As a customer you exchanged your money for a product, not an interest in the company. The stockholders, on the other hand, exchanged their money for an interest in the company. Now you are welcome as a customer to judge the value of what you purchase and choose whether or not to purchase, but you get no say in setting the price or employee pay. Part of business is to make decisions that attract one customer and repel another. That is life, and it is business. The bottom line of Disney is not to do whatever you want. The business is to make money by doing what a large number of their customers want at the highest price for the lowest cost. A simple formula that becomes very complex in real life.

Well said.

 

[GAN]

No we wouldn't be where we are today. Freedom and capitalism together, governed by reasonable laws, is what made America great. Yes, laws need to be adjusted or new ones made sometimes, but in general the system worked well.

I think it's beautiful the way you responded -I'm going to go out on a limb and suggest that you may have left out a key component. Thank you for answering my questions!

 

[a742246]

A successful companies greatest asset is its employees!

If the Board of Directives feels like paying the Mr Iger $46,500,000.00 let them. Personally, I believe he would probably would be happy with much less . That doesn't bother me. What bothers me is the way his compensation is structured. It is structured so that he will be paid with the least amount of taxes that he has to pay.

I wouldn't be surprise if his total Federal Tax will be under 20%. Now, compare that to what a two income college educated middle class family makes. What you will see is the two income family will probably have a much higher Federal tax percentage (I am including SSI and MED I consider this a Fed tax) perhaps 50-70 percent higher then Mr Iger. This is where I have a problem.

If the Board wants to pay him $46.5 million let them but pay him in cash not these structured deals.

 

[OKW Lover]

A successful companies greatest asset is its employees!

If the Board of Directives feels like paying the Mr Iger $46,500,000.00 let them. Personally, I believe he would probably would be happy with much less . That doesn't bother me. What bothers me is the way his compensation is structured. It is structured so that he will be paid with the least amount of taxes that he has to pay.

I wouldn't be surprise if his total Federal Tax will be under 20%. Now, compare that to what a two income college educated middle class family makes. What you will see is the two income family will probably have a much higher Federal tax percentage (I am including SSI and MED I consider this a Fed tax) perhaps 50-70 percent higher then Mr Iger. This is where I have a problem.

If the Board wants to pay him $46.5 million let them but pay him in cash not these structured deals.

I'm sure its structured that way on purpose. If they did it another way that incurs more taxes, then the total pay would have to increase to compensate.

 

[a742246]

I'm sure its structured that way on purpose. If they did it another way that incurs more taxes, then the total pay would have to increase to compensate.

Then pay him more if you want, I just want him to pay at "least" the same percentage in taxes as you and I. Don't you agree?

 

[JPM3]

Mr. Iger's base + other cash compensation is already subject to the same ordinary progressive federal rates as those imposed on every taxpayer in this country. The issue is that a significant portion of his total comp is taxed at preferential rates, thereby lowering his total "effective tax rate".

Of course the lower rates on preferential income also applies to everyone else. Unfortunately most of us ordinary citizens are paid predominantly in base salary and cash bonuses, therefore we see a proportionally higher tax bill relative to our less extreme incomes.

To tax every dollar earned in the same manner, regardless of how it is earned, would require another overhaul/reform of the IR code, and I get the feeling Congress ain't gonna act on that one anytime soon.

 

[a742246]

I would love to know how these preferential income provisions got into the IR statutes in the first place. Was it hidden in another bill? Was it squeezed in unnoticed? Who knows?

I own a small c business if I took a one dollar salary and the rest in "preferential income" I would expect to be audited. Why? They would want me to pay payroll taxes on most of that "preferential income" and they would be correct. But large corporations get away with it all the time.

I would love Congress to start acting for the good for the whole country!

 

[lockedoutlogic]

I would love to know how these preferential income provisions got into the IR statutes in the first place. Was it hidden in another bill? Was it squeezed in unnoticed? Who knows?

I own a small c business if I took a one dollar salary and the rest in "preferential income" I would expect to be audited. Why? They would want me to pay payroll taxes on most of that "preferential income" and they would be correct. But large corporations get away with it all the time.

I would love Congress to start acting for the good for the whole country!

Way too late... Corporatists and crony capitalism won long ago

 

[mm1971]

What's wrong for with picture.

President of US paid $400,000 a year.
Disney CM $9.00 a hour
Disney CEO $46.5 million a year.

While taking into account the responsibilities and the daily pressure, I think this is reasonable. Remember that his "salary" is not just a paycheck. There are other types of compensation. Would I be OK with a CM making more per hour, of course. I just don't see comparing someone that is expected to oversee a billion dollar company with someone serving me popcorn as a valid comparison. Like it or not, he has done a great job of packing the parks, developing the movie studios and building the cruise lines. And remember that CEO is a 24 hour a day job, not the normal 8 hour shift.

Hmmm? Our current president is vastly overpaid?

Being a politician used to be a volunteer job that was accomplished by building respect and honor from the people you represented. Maybe we should either go back to that system or hire a president?

I kid of course. Not likely either solution would work in todays world.

I understand why shareholders don't have an issue with his salary

Since I am a customer and not a shareholder, my viewpoint is going to be from that of a customer. That viewpoint is that my cost of a WDW vacation has increased dramatically yet my enjoyment of my WDW vacations has not, for various reasons. We did not go to WDW last year and we will not go this year either. Since we have made thirteen trips, we often get contacted by Disney. I have informed them that I will not return until I feel it will be the value that it used to be.

I am sure that isn't much of a concern since attendance remains high. That is fine. I have no control over what any else does but me. I am happy to spend my vacation dollars elsewhere.

The price increases and costs of a vacation are not determined by the CEO salary, it is determined by supply and demand. Anyone remember all of the special deals 6-10 years ago when the parks were not full? We used to go in the offseason and the kids were free. Yup-free airfare, resort and park tickets if we paid for the adults. That was a pretty good deal, even at Disney prices. As long as people keep paying the prices, they'll keep going up until they get to that magical point of diminishing returns and attendance levels off or drops.

We go when discounts or FD are available, only do a few park days and enjoy some of the free activities. We do still enjoy the WDW vacations and it is still worth the cost to us. Will there be a time when the cost is too high, of course. When that time comes, we will stop going.

 

[mm1971]

Then pay him more if you want, I just want him to pay at "least" the same percentage in taxes as you and I. Don't you agree?

So what your saying is that no matter how much someone makes, the % of tax should be the same? That would then be a flat tax rate that all would pay (and would be 5% or less) and would change the structure of the economy. I'm with you on this and to be honest it would bring in more tax revenue.

Of course then the 30-50% of Americans that currently do not pay taxes due to their low income would now have to pay the same % as well. Or were you only concerned with those that make more than you do?

I would love to know how these preferential income provisions got into the IR statutes in the first place. Was it hidden in another bill? Was it squeezed in unnoticed? Who knows?

I own a small c business if I took a one dollar salary and the rest in "preferential income" I would expect to be audited. Why? They would want me to pay payroll taxes on most of that "preferential income" and they would be correct. But large corporations get away with it all the time.

I would love Congress to start acting for the good for the whole country!

Those "provisions" are always put into bills and new laws in order to get them passes. The only way to stop it would be to elect representatives that cared more about their constituents than themselves. Unfortunately that ship has sailed.

I agree that a Congress that represented the people it serves would be absolutely heavenly.

 

[midge3426]

I don't think Bob Iger deserves the money that he has made because he no longer cares about the consumer. The parks have severely gone downhill the past ten years. The buildings are showing their age and there is a severe lack of planning at WDW. Things are now being done half way. Customer service at the parks and hotels are not very good.

The movie, Frozen, is okay, but it is not as marvelous as corporate Disney thinks. I must agree that it is a bit better than the ones produced in the past few years and it is a sad commentary that everyone goes so "nuts" for a fair product.

Eventually, the poor customer service and lack of planning will eventually catch up and park attendance will fall. I have been going to Disney with my family, every year, since 1993. I feel betrayed by the Disney corporation. They are destroying a quality product. They are pinching way too many pennies. A vacation to Walt Disney World is expensive and has always been expensive. Now, you are no longer getting a quality product. I, like another poster, will no longer spend my hard earned money at a location that no longer cares. Bye, bye Disney World.

 

[OKW Lover]

Some of you might want to read the latest Disney Proxy Statement which explains how the Board determines the appropriate compensation for the executives.

 

[DDLand]

Some of you might want to read the latest Disney Proxy Statement which explains how the Board determines the appropriate compensation for the executives.

What? You're saying that people should read the explanation for the payment before jumping to conclusions?