Disney Raises Bar for Iger Pay -- WSJ
December 04 2018 - 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 (December 4, 2018).
LOS ANGELES -- Shareholder pushback against Walt Disney Co.
Chief Executive Robert Iger's compensation has led the company to
increase the targets he must meet to collect his performance
bonus.
Disney announced Monday more-rigorous benchmarks required for
Mr. Iger to collect a $100 million equity grant in 2021 that had
been criticized by shareholder advisory groups.
Mr. Iger has already been granted a portion of the grant valued
at roughly $25 million. Under the new arrangement, he will collect
the remaining amount tied to the equity grant only if his company's
total shareholder return outperforms 65% of companies in the
S&P 500. The original agreement granted the payment if Disney
outperformed the 50th percentile.
In March, Disney shareholders in a nonbinding advisory vote
rejected a compensation plan for Mr. Iger and other executives,
with 52% of shareholders voting no on a plan that would have paid
the CEO as much as $48.5 million a year in total compensation from
2018 to 2021. The additional $100 million equity grant -- which the
advisory firm Institutional Shareholder Services had called
"excessive" -- would follow in 2021 if Disney shareholder return
met those S&P targets.
The compensation was tied to Disney's $71.3 billion acquisition
of major assets of 21st Century Fox, a deal that is expected to
close in early 2019.
Despite the vote's nonbinding status, Disney said at the time it
would take the result under advisement.
A Disney spokesman said the change "reflects feedback received
directly from shareholders and underscores Mr. Iger's and the
Board's confidence that the current strategic direction of the
company will generate significant value for our shareholders."
Other aspects of the performance plan remain unchanged.
Wall Street regards Mr. Iger's tenure atop Disney, starting in
2005, as a success, with acquisitions of Pixar Entertainment and
Marvel Studios paying returns at the box office and theme-park
revenue growing at a record rate. He has extended his retirement
date several times, most recently to see through the company's
acquisition of Fox.
Mr. Iger collected $36.3 million in total compensation during
the 2017 fiscal year.
Write to Erich Schwartzel at erich.schwartzel@wsj.com
(END) Dow Jones Newswires
December 04, 2018 02:47 ET (07:47 GMT)
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