The Walt Disney Company has reportedly cut some of the compensation increases planned for CEO Bob Iger tied to the company’s acquisition of 21st Century Fox, according to The Wall Street Journal.
- The changes made to Iger’s compensation package result in a cut of $13.5 million in potential salary and incentive awards.
- The cuts include:
- Cancellation of an annual $500,000 base salary increase.
- Lowered yearly bonus from $20 million to $12 million.
- Cut annual, long-term incentive award by $5 million, to $20 million.
- All of these potential compensation increases were tied to the acquisition of 21st Century Fox.
What they’re saying:
- The Walt Disney Company CEO Bob Iger: “I am proud to be leading the Walt Disney Company through this important time and believe the changes I, with the board, have made are in the best interest of the company.”
Previously:
- Iger saw an increase of more than 80% in his compensation in the 2018 fiscal year.
- Iger’s total compensation increased to $65,645,214, up from $36,283,680 in the previous year.
- His salary got a slight bump up from $2,500,000 to $2,875,000, but the biggest factor was an increase in Stock Awards up to $35,352,327 from $8,984,191.
- This compensation did not include changes that the Board and Mr. Iger agreed to after the end of the fiscal year that would increase the targets to achieve his maximum bonuses.
- Among the changes made, Iger previously received 50% of the target number of units if Disney’s performance was equal to 25% of the companies in the S&P 500.
- Now, Disney will need to perform in the 60.5th percentile of S&P 500 companies in order for Iger to receive the same level of award.
- This adjustment comes after stockholder’s voted down proposed compensation package for Iger at this year’s shareholders meeting.
- Iger agreed to stay on as CEO of The Walt Disney Company as a condition of the 21st Century Fox acquisition.
- Iger was originally announced to be retiring in 2015 before extending his contract multiple times.