Disney's top two executives take home $24m

The Times ^ | January 30, 2003 | James Doran

[MadIvan]

MICHAEL EISNER and Bob Iger, the top executives at Walt Disney, were awarded more than $24 million (£15 million) between them in pay and bonuses last year even though the company’s share price plunged by more than a third.

Mr Eisner, chairman and chief executive, last year took home a $5 million bonus and $1 million as a salary. Mr Eisner, who has come under fire from investors because of the poor performance of the entertainment group’s ABC TV network and other faltering aspects of the business, chose to take much of the $5 million bonus in restricted shares, which will vest over four years.

In 2001, Mr Eisner took a salary of $1 million, but was not paid a bonus.

Mr Iger, Walt Disney’s president and chief operating officer, was paid $18 million, including a promotion-related bonus. Some $12.6 million of Mr Iger’s payment came in stock options, while his basic pay of $1.5 million was increased to $2 million as part of his promotion.

The massive remuneration packages were revealed in the company’s annual report, published ahead of its fourth-quarter results, which are expected later today.

Disney said that Mr Eisner’s bonus reflected his leadership in tough times and “ongoing efforts to set the groundwork for strengthening the company’s future performance”.

Mr Eisner recently set out a five-year recovery programme for Disney, but little has been implemented so far.

The share price, meanwhile, has slumped 34 per cent in the past year.

In a letter to shareholders released with the annual report, Mr Eisner invited them to compare the current downturn in Disney with the company’s state when he was named chief executive in 1984.

Mr Eisner also said that he believed that Disney shares were undervalued and that he expected earnings to rise by between 25 per cent and 35 per cent this year.

Disney’s business is struggling across the board and has been hit by weakness in its theme parks and television divisions. The theme parks, including Disneyland and Disney World in America, have seen a consistent fall in visitor numbers since the terrorist attacks of September 11, 2001.

Meanwhile, the ABC television network has increased spending on programming as part of its turnaround plan, and advertising sales are understood to have risen slightly this month.

[MadIvan]

Maybe it's just me, but I would have thought he should get a bonus AFTER turning the company around. I don't mind huge bonuses, but huge bonuses for creating bad entertainment and thus bad performance is just plain odd.

Regards, Ivan

[MadIvan]

Bump!

[alaskanfan]

Is that after taxes?

[Alex Murphy]

Mr Eisner also said that he believed that Disney shares were undervalued and that he expected earnings to rise by between 25 per cent and 35 per cent this year.

And if he closes his eyes and believes hard enough, Tinkerbell will be okay, too.

[Grampa Dave]

The $crewing of Disney Stockholders by Eisner and his evil left wing twin Bob Iger has hit a new low. This is incredible but so typical of any corporation.

This poor a$$ed excuse of a company should be removed from the Dow Jones Average. The Dow Jones Average should be an index of the top twenty five companies in America. If the company fails to make a profit and its stocks slide it out of the top 25, it is adios.

[MadIvan]

And if he closes his eyes and believes hard enough, Tinkerbell will be okay, too.

I know, it's not like he has a cut in "Lord of the Rings" or something. Disney films are rather formulaic, passe and predictable.

Regards, Ivan

[NC Conservative]

Wow. Liberals are compassionate. Run a company into the ground get 24 million in bonuses while the "little Person" oh wait "regular person" gets nothing.

[Grampa Dave]

Rumors have that Tinkerbell is there everynight waiting for him to close his eyes!

[Banjoguy]

In Florida they are closing the Diamond Horseshoe and have given another musical quintet(Rhythm Rascals) a walk to the main gate. Now there is just a slimmed down version of the original World Band left to provide live music. I think the combined loss of jobs by musicians in the past year amounts to about 42 men. The World Band(25), The Kids band(10), The Rhythm Rascals(5), and The Diamond Horseshoe(2).

What a joke Disney world is. Now there is literally no live music, the company culture has dramatically changed for the worse, prices should be an outrage, many parents refuse to take their kids there for fear of what kind of visuals they may be exposed to and the theme parks have become a ripoff.

[Liz]

This latest is typical of Eisner's arrogance - he could care less about the "little people." Eisner packed the board with his rubber-stampers. Shareholders filed suit about it.