Walt Disney Company CEO Bob Iger’s decision to stick with the Mouse through the end of 2021 could result in an extremely healthy compensation package for the longtime company chief.
ISS Analytics predicts Iger could earn up to $423 million over the next four years if he hits all of Disney’s performance goals.
Earlier this year, a majority of Disney shareholders voted against the proposed executive compensation packages at the company’s annual shareholders meeting. About 52% opposed the compensation packages while about 44% approved.
As Deadline pointed out, Disney’s compensation committee argued that it’s “critical” for Iger to remain in charge as Disney pursues its $52.4 billion acquisition of 21st Century Fox’s entertainment assets.
When Disney-Fox deal was originally announced, along with the extension to Iger’s contract, a similar argument for keeping on Iger was made.
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“When considering this strategic acquisition, it was important to the board that Bob remain as chairman and CEO through 2021 to provide the vision and proven leadership required to successfully complete and integrate such a massive, complex undertaking,” said Orin Smith, lead independent director of the Disney board, who died in March 2018. “We share the belief of our counterparts at 21st Century Fox that extending his tenure is in the best interests of our company and our shareholders, and will be critical to Disney’s ability to effectively drive long-term value from this extraordinary acquisition.”
Iger’s plans to stay with Disney through 2021 came after last year he committed to stay into 2019.
Under that previous contract, Iger was in line for a cash bonus of $5 million in addition to an award for fiscal 2019 as long as he had stayed on through the end of his renewed contract. After that, Disney had intended to keep Iger on as a consultant for three years, for which Iger would have received a quarterly fee of $500,000 for each of the first eight quarters during the consulting period and $250,000 for each of the last four quarters.