Monday, December 23, 2013

Pay Cut

The Mouse's CEO gets a haircut.

Walt Disney Co. said it was adding Twitter Inc. co-founder Jack Dorsey to its board. The entertainment company also reported that compensation for its chief executive, Robert Iger, fell 15% to $34.3 million in its latest fiscal year.

The appointment of Mr. Dorsey, who is chairman of Twitter and chief executive of online commerce company Square Inc., reflects Mr. Iger’s longstanding priority on maintaining strong connections to Silicon Valley.

[A] Disney regulatory filing disclosed details of Mr. Iger’s compensation. Most of the decline was due to a reduction in his cash bonus to $13.57 million, from $16.5 million in fiscal 2012, as the board’s compensation committee concluded he didn’t outperform targets as much as in the prior fiscal year. Mr. Iger’s bonus was still higher than his target of $12 million.

Mr. Iger’s compensation has been a contentious issue with some Disney shareholders, as the board acknowledged in its filing. At Disney’s annual meeting last March, about 42% of shareholders voted against a nonbinding “say on pay” resolution approving the company’s executive compensation.

In the filing, the company said that the board’s compensation committee “has been regularly updated on conversations with investors and understands that shareholders remain very focused on the alignment of pay and performance as well as the absolute level of executive compensation, particularly for the Chief Executive Officer.”

I don't know how Mr. Iger is going to live on 15% less pay. But American citizens live in frugal times. So it's comforting to know that the top banana at Diz Co. will be sharing some of the collective pain.


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