Disney Shareholders Raise the Bar for Chief Executive Bob Iger.
The Walt Disney Company has raised the bar for Chief Executive, Bob Iger, in order to win his bonus. Disney has announced Monday, after shareholder push back, that more rigorous benchmarks are required for Iger. Iger was slated to collect a $100 million equity grant in 2021, a grant that has been previously criticized by the Disney Company’s shareholder advisory groups. However, in the new agreement Iger has to show that his company’s total shareholder return outperforms 65th percentile of companies in the S&P 500 index. In the original agreement granted to Iger, The Walt Disney Company had to outperform in the 50th percentile. Which is a significant increase.
Recently in March, Disney shareholders voted to reject a compensation plan for Iger and other executives in a nonbinding advisory vote. In the vote, 52% of the shareholders voted no on a plan that would have paid the CEO up to $48.5 million a year in total compensation from 2018-2021. In addition the additional $100 million equity grant would follow in 2021 if the Disney shareholders met the S&P index. However, the advisory firm institutional shareholder services have called the additional equity grant “excessive”.
The Compensation of Iger was tied to Disney’s $71.3 billion acquisition of major assets of the 21st century Fox deal that is expected to close in early 2019. Tell us what you think of the increased compensation and target goals in the comments!
Copyright Wall Street Journal
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