Disney Shareholders Approve Executive Compensation by Narrow Margin
March 11 2020 - 12:51PM
Dow Jones News
By R.T. Watson
Walt Disney Co. shareholders approved a referendum outlining
former Chief Executive Robert Iger's compensation for 2019, with
less support than the previous year's vote.
At the company's annual meeting Wednesday, the nonbinding
resolution on executive compensation, including Mr. Iger's $47.5
million package, passed with about 53% of shareholder votes. The
same resolution was accepted at 2019's meeting with 57% voting in
favor.
In 2018, the referendum was rejected, causing the company to
alter Mr. Iger's proposed compensation.
Mr. Iger stepped aside as CEO last month, announcing that he
would remain as executive chairman and focus on creative affairs.
Former parks and resorts head Bob Chapek was named CEO.
Shareholders weren't scheduled to vote on the newly appointed
Mr. Chapek's pay, but his target compensation is set at $25 million
annually. Mr. Iger is scheduled to retire at the end of 2021.
Mr. Chapek, who has been at Disney for 27 years, inherits a
company that has enjoyed unprecedented success under Mr. Iger,
spurred by a series of acquisitions, including Pixar Animated
Studios, Marvel Entertainment and Lucasfilm Ltd.
This year was already set to be a challenging one for Disney as
its slate of films lacks the firepower of 2019. But managing 2020
has become significantly more difficult as the coronavirus epidemic
continues to spread around the world. Theaters in key markets like
China have faced mass closures.
Disney was forced to close its theme parks in Shanghai and Hong
Kong. Earlier this week, the Shanghai Disney Resort partially
reopened at a limited capacity.
While the number of coronavirus cases in the U.S. rises, Disney
hasn't announced any plans to close its parks in California or
Florida.
At Wednesday's meeting in Raleigh, N.C., Mr. Iger sought to
assure shareholders that Disney would successfully weather what he
called a "global crisis."
"These are challenging times for everyone," he said. "But it's
also important to note that throughout our company's nearly
centurylong history, Disney has been through a lot, including wars,
economic downturns and natural disasters."
(END) Dow Jones Newswires
March 11, 2020 12:36 ET (16:36 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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