BOBing for Iger
LOS ANGELES – The Walt Disney Co. said on Friday it has 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 terms of the deal, Iger could receive an annual incentive bonus of $10 million or more, along with an annual 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. The 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 Burbank, Calif.-based company’s board of directors 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 in fiscal 2007 valued by the company at $27.7 million, 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 profits from stock and option awards that had an estimated value of about $11.2 million when granted. Disney shares rose 82 cents, or 2.7 percent, to $30.66 on Friday. The stock has ranged between $26.30 and $36.79 over the past 52 weeks.