Disney’s CEO Iger Sees Fiscal 2013 Compensation Slide 15%

Robert Iger, Walt Disney (DIS) Co.’s chairman and chief executive officer, earned $34.3 million in total pay in fiscal 2013, a 15 percent drop as the company failed to beat its targets as handily as the prior year.

Iger’s pay, based on regulatory reporting rules, included $2.5 million in salary, unchanged from a year ago, along with $8.8 million in stock awards, $8.48 million in option awards and a bonus of $13.6 million, according to a filing yesterday by Burbank, California-based Disney. His compensation totaled $40.2 million on that basis a year earlier.

Disney, the world’s largest entertainment company, posted record sales and profit for a third straight year, according to the filing. The company’s performance was “insufficient” to beat all of the “aggressive performance ranges” set by the board, according to the filing, which cited operating income and earnings per share growth.

“Mr. Iger’s cash bonus declined versus his fiscal 2012 bonus as the company’s outperformance relative to financial measures established by the compensation committee did not match the magnitude of outperformance delivered in fiscal 2012,” Disney said in the filing.

In addition, Iger’s fiscal 2013 pension-related income fell due to changes in fund assumptions.

In the previous year, Iger’s pay reflected the acquisition of Lucasfilm and “the culmination of a number of strategic milestones,” the company said.

‘Strategic Milestones’

Those included the opening of Cars Land at California Adventure, expansion at Hong Kong Disneyland, the launch of the second new cruise ship, and the strong box office results for “Marvel’s The Avengers,” Disney said.

Shareholders have filed two proposals to be voted on at the company’s March 18 annual meeting in Portland, Oregon. They would give shareholders greater ability to nominate candidates for the board and put limits on the acceleration of executive pay awards in a takeover.

The proxy access proposal would let shareholders owning 3 percent of the stock for at least three years propose a nominee to the board and have the name appear in the proxy. Disney said its board opposed both measures.

Disney also said its board elected Twitter Inc. co-founder and Chairman Jack Dorsey as an independent director, effective immediately. He will stand for election with the company’s other directors at the March 18 meeting.

Tech Perspective

“The perspective he brings to Disney and its board is extremely valuable, given our strategic priorities, which include utilizing the latest technologies and platforms to reach more people and to enhance the relationship we have with our customers,” Iger said in a statement.

Judith Estrin, a former chief technology officer at Cisco Systems Inc., won’t stand for another term after hitting Disney’s 15-year limit.

Disney reported net income of $6.14 billion, or $3.38 a share, in the fiscal year that ended Sept. 28. That marked an 8 percent increase from $5.68 billion, or $3.13 a share, the year before. Revenue grew 6.5 percent to $45 billion.

Disney rose 0.8 percent to an all-time closing high of $73.85 in New York. The shares have gained 48 percent this year, compared with 29 percent for the Standard & Poor’s 500 stock index.

To contact the reporter on this story: Christopher Palmeri in Los Angeles at cpalmeri1@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net

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