Disney Heir Assails CEO Iger's Salary -- WSJ
April 23 2019 - 3:02AM
Dow Jones News
By Erich Schwartzel
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (April 23, 2019).
LOS ANGELES -- Critics of Walt Disney Co. Chief Executive Robert
Iger's compensation have gained a prominent ally: an heiress to the
fortune of the company's eponymous founder.
At an event held by Fast Company magazine last week and in a
subsequent series of Twitter posts, Abigail Disney, a great niece
of Walt Disney and granddaughter of his brother and company
co-founder Roy O. Disney, characterized Mr. Iger's most recent $65
million pay package as a flagrant example of the bulk of corporate
profits going to the wrong employees.
Ms. Disney, 59 years old, has no formal connection to the
company, beyond holding an undisclosed number of shares.
Her remarks came in response to a recent study by
corporate-research firm Equilar Inc. showing that Mr. Iger's annual
compensation is more than 1,400 times that of the median Disney
employee.
"I like Bob Iger. I do NOT speak for my family but only for
myself," Ms. Disney tweeted on Sunday. "But by any objective
measure a pay ratio over a thousand is insane."
Mr. Iger, one of the best-compensated executives in
entertainment, has faced more criticism over his salary than most
in an era when C-suite pay across multiple sectors is being
scrutinized and hourly wage employees say they deserve to share in
a company's profits.
A Disney company spokesman disputed Ms. Disney's assertion that
Mr. Iger's pay was disproportionate.
"Disney has made historic investments to expand the earning
potential and upward mobility of our workers, implementing a
starting hourly wage of $15 at Disneyland that's double the federal
minimum wage," the spokesman said. He added that 90% of Mr. Iger's
compensation is based on performance, and that Disney's stock price
has increased to $132 a share from $24 a share when Mr. Iger became
CEO in 2005.
In November, Disney reported a record annual profit of $12.6
billion on $59 billion in revenue.
Last year, Disney shareholders voted down a nonbinding
endorsement of Mr. Iger's pay package, and the company has altered
his compensation twice this year in response to blowback.
In March, days before the company's shareholder meeting, Disney
cut $13.5 million in potential salary and incentive awards
available to him after the closing of the company's acquisition of
21st Century Fox Inc. assets. That followed a December move to
raise the benchmarks Mr. Iger had to meet to collect a $100 million
equity grant in 2021.
Following the changes last month, Disney shareholders narrowly
approved a say-on-pay referendum on Mr. Iger's salary, with about
57% of shareholder votes supporting it.
Ahead of contract negotiations with the company last year,
several theme-park unions promoted a well-publicized report
detailing concerns workers had about being evicted or earning
enough to cover everyday expenses. One Disneyland employee said she
was homeless and slept in her car between shifts.
Disney called the survey "inaccurate and unscientific."
On Sunday, Ms. Disney, who holds a doctorate in English
literature and has made a series of documentaries on social-justice
issues, made it clear whose side she was on.
"Anyone who contributes to the success of a profitable company
and who works full time to do so should not go hungry, should not
ration insulin, and should not have to sleep in a car," she
said.
Write to Erich Schwartzel at erich.schwartzel@wsj.com
(END) Dow Jones Newswires
April 23, 2019 02:47 ET (06:47 GMT)
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