logo
Plus   Neg
Share
Email

Disney Revises CEO Bob Iger's Pay Package

The Walt Disney Co (DIS) announced more rigorous benchmarks required for its Chief Executive Robert Iger to collect a $100 million equity grant in 2021 that had been criticized by shareholder advisory groups.

The company and Mr. Iger have agreed to adjustments that establish meaningfully more rigorous performance goals: As revised, no units will be earned if the Company's Relative TSR is less than or equal to the 25th percentile, the level at which the target number of units is earned has increased from the 50th percentile to the 65th percentile, and the maximum number of units that can be earned (at the 75th percentile) has decreased from 150% to 125%.

Under the new arrangement, Iger will collect the full amount of shares 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.

To maintain the initial negotiated value of the Extension PSU Award with the addition of more challenging performance criteria that reduce the likelihood of earning the units, the target number of units subject to the award has been increased to 937,599 units, as determined by applying a Monte Carlo simulation and the price of the Company's common stock established for purposes of applying the exchange ratio under the 21st CF Merger Agreement.

The company and Iger have also agreed that annual performance share unit awards granted to Iger following the closing under the 21st Century Merger Agreement will include the limitation to 100% of the target number of units if the Company's TSR over the relevant performance period is negative.

In March, Disney shareholders in a nonbinding advisory vote rejected a compensation plan for Iger and other executives, with 52% of shareholders voting no on a plan that would have paid the CEO up to $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, a deal that is expected to close in early 2019.

For comments and feedback contact: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Southwest Airlines Co. said it will investigate whether a dispute with its mechanics union was the cause of an "unprecedented number" of out-of-service aircraft that resulted in flight cancellations and flight delays. Southwest Airlines COO Mike Van de Ven said in a statement that the airline has been negotiating with Aircraft Mechanics Fraternal Association or AMFA for more than six years. Shares of Air France-KLM Group were gaining around 4 percent in Paris trading after the airline reported Wednesday narrower net loss in its fourth quarter with improved revenues. For fiscal 2019, Air France-KLM Group plans to selectively grow capacity for the Passenger network by 2 percent to 3 percent compared to 2018. The company also said it will pursue initiatives to reduce unit costs. Walmart Inc. (WMT) reported adjusted EPS of $1.41 for the fourth-quarter of fiscal 2019. On average, 27 analysts polled by Thomson Reuters expected the company to report profit per share of $1.33 for the quarter. Analysts' estimates typically exclude special items. Net income attributable to Walmart...
Follow RTT