Given his successful track record, Bob Iger is worth a lot to The Walt Disney Company.
Oh, around $423 million if calculations by advisory firm ISS Analytics are correct.
While the original plan was for Iger to step down in 2019, his contract has been extended to 2021 so he can oversee the Fox acquisition and the launch of Disney’s streaming service. Both of these deals are critical to the company to the longterm health of the company, and a change in leadership probably wouldn’t be a wise move.
Here’s how ISS Analytics mathed it out…
In return for extending his contract through 2021, Iger received a $25M stock award vesting over four years and, more significantly, large incentives to close the 21st Century Fox deal quickly, after which he will receive an additional $16M annually, ISS told Deadline. An additional balloon payout targeted at $70M at the end of 2021 is also in place. If all performance maximums are met, Iger’s total potential payout stands at more than $423M.
A majority of Disney shareholders — 52% — opposed Iger’s compensation and that of other executives in a non-binding advisory vote. The vote tally was reported during Disney’s March 8 annual shareholder meeting in Houston.
However, in regulatory filings, Disney’s compensation committee justified the lucrative package, arguing it is “critical” to keep Iger at the helm of the company to manage Disney’s proposed $52.4B acquisition of 21st Century Fox’s film and TV assets.
According to Deadline, Disney hasn’t commented on Iger’s compensation.
Given that Iger oversees one of the largest media companies on the planet that generates billions in revenue, his exorbitant salary may be justified. It would be hard to argue against Iger being key to Disney’s present day success.[Source: Deadline]
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