Friday, January 18, 2013

Like a Rock Star

As the Nikkster's site tells us.

... The [Disney] Compensation Committee’s assessment that Mr. Iger’s performance as chief executive officer has been excellent.” Disney shares appreciated 76% in the fiscal year that ended September 30, while the Standard & Poor’s 500 was up 30%. ...

Still, Disney paid Iger like a rock star: He made 6.3 times the median pay for the four other executives named in the proxy. Corporate governance watchdogs say that CEO pay is out of whack when it exceeds three times the average for other top officers. The second-highest-paid exec, CFO Jay Rasulo, made $12.2M, a raise of 10.2%. ...

Our fine entertainment conglomerates usually pay their Top Dogs handsomely.

I remember several years ago when a Disney lawyer told me that then CEO Michael Eisner and Robert Iger got bonuses in the millions even as Disney Co. stock was declining. At the time, he sounded a tad disgruntled about it, but you know lawyers. They are seldom happy about anything.

But it only makes sense that if you get millions in bonuses when the stock is going down, that you should get more bonus money when the stock is going up.

So congratulation to Mr. Iger and the runner-up, Jay Rasulo. I'm not a Disney shareholder, but my wife is. And she just now said: "How nice for them."

I'm certain quite certain her sentiment was heartfelt.


Celshader said...

I'm not a Disney shareholder, but my wife is.

I index with total-market stock funds, so I'm pretty sure I own Disney stock as part of the mix. ;^)

Steve Hulett said...

I own index funds as well, but I don't count that as owning Disney shares ... although undoubtedly I do.

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