|Disney signs CEO Robert Iger to new 5-year contract
THE Walt Disney Co. said it signed Chief Executive Robert Iger to a new five-year contract that will pay him an annual salary of $2 million plus bonuses and stock awards that could be worth millions more.
Under the deal announced Friday, Iger could receive an annual incentive bonus of $10 million or more, along with an annual long-term incentive compensation equity award valued at $9 million or more, if Disney meets certain performance goals, according to a document filed with the Securities and Exchange Commission.
Iger's previous contract included an annual performance bonus beginning at $7.25 million and annual long-term incentive compensation starting at $8 million.
The new deal also calls for the executive to receive a stock option grant for the purchase of 3 million shares of Disney common stock at the exercised price of $29.50 a share.
In addition, the compensation package includes perks and benefits in line with what Disney gives other senior executives, according to the filing.
The executive's previous contract was set to expire Sept. 30, 2010. His new contract runs through Jan. 31, 2013.
In a statement, the board of directors of the Burbank, Calif.-based company praised Iger's job performance, noting the executive has presided over record revenues, net income and earnings per share since being named CEO on Sept. 30, 2005.
"Bob is a talented and visionary leader, under whom Disney has posted increases in growth and profitability that have consistently exceeded expectations," said John E. Pepper Jr., Disney's chairman.
Disney, which operates film studios, theme parks, TV cable channels and other businesses, ended fiscal 2007 on an upswing, posting annual profit of $4.69 billion, or $2.25 per share, compared with $3.37 billion, or $1.64 per share, in fiscal 2006.
Its revenue rose to $35.51 billion from $33.75 billion in the same period. Iger, who also holds the title of president, received a compensation package valued by the company at $27.7 million in fiscal 2007, according to an analysis of documents by The Associated Press.
Iger received a salary of $2 million, non-equity incentive plan compensation of $13.7 million, other compensation of $745,177, and stock and option awards that had an estimated value of about $11.2 million when granted.
Disney also signed Chief Financial Officer Thomas O. Staggs to a new five-year contract that runs through April 1, 2013.
Staggs will be paid a base salary of $1.25 million in the first year of the contract. He'll receive a $75,000 increase each of the next two years and a $50,000 hike each of the last two years of the deal, according to the filing.
Staggs also could receive an annual bonus equal to twice his annual base salary or more, and a long-term incentive award valued at three times his annual base salary or more, depending on his job performance.
The executive also was awarded 250,000 restricted stock units.