Disney CEO falls short to score $60 million bonus but still hits record compensation
Iger's total compensation jumped 81 per cent from the prior year
Walt Disney chief executive Bob Iger missed his shot at a $60 million (Dh220m) bonus but still got his largest-ever compensation package thanks to special awards issued in connection with his contract extension.
Mr Iger was awarded $65.6m for 2018, including an $18m cash incentive and $43.6m in restricted stock and options, the Burbank, California-based company said Friday in a regulatory filing. His total compensation jumped 81 per cent from the prior year, boosted by stock grants he received in December 2017 when he agreed to remain Disney’s chief executive through 2021.
Mr Iger, who’s for years been among America’s highest-paid executives, stands to reap an even larger windfall if investors and regulators approve the company’s deal with Rupert Murdoch’s 21st Century Fox. Absent from his compensation figure were certain stock grants tied to the deal, which is still pending. At the end of the day, all the equity awards he received in December 2017 could be worth as much as $149.6m if the combined entity meets certain performance conditions, the filing shows.
Missing from his 2018 haul: A cash payout of as much as $60m that was tied to the firm’s cumulative segment operating income for the five years ended September 29. Disney posted $73.9 billion over that period. Mr Iger would have received part of the award if total adjusted operating income exceeded $76bn, and the full amount if it reached $78.3bn.
Disney’s board lowered the target ranges for segment operating income and return on invested capital it used to calculate executives’ bonuses for 2018, in recognition of the company’s investments in theme parks and video streaming services, according to the filing. Payouts jumped by between 18 per cent and 54 per cent for top executives compared with 2017.
Disney also for the first time disclosed compensation for its chief communications officer Zenia Mucha, who received $5.1m. Her package included $961,000 in salary, a $2m cash bonus and about $2.1m in equity awards. Her contract, like Mr Iger’s, runs through 2021.
Updated: January 12, 2019 11:19 AM