Another Day, Another Excessively Paid CEO
David Phillips (10Q Detective
) submits: Accounting fraud and executive peccadilloes aside, there are few business activities the news media—including us—delights in exposing as much as excessive executive compensation. Add Disney CEO Bob Iger’s just announced $24.9 million pay package for fiscal year ended September 2006 to that growing list.
According to its Proxy, filed late on Friday, the entertainment-media conglomerate revealed that Messer. Iger’s compensation included $2 million in salary, a $15 million cash bonus, and a $4.3 million payout from the vesting of performance options. Messer. Iger also received $666,000 expense reimbursements for auto benefits ($14,400), personal air travel ($67,879), and security ($578,656); and, $2.92 million in Disney stock options granted (exercise price – $24.87 per share) during the company's fiscal year, ended Sept. 30.
Prior to taking over from Mike Eisner in October 2005, Iger was Disney’s President and COO. He received $9.24 million in salary and cash bonus, $500,000 in restricted stock, 274,241 stock options, and other compensation of $1.02 million.
In setting the target bonus for Iger, the Compensation Committee heavily weighted his bonus to the Company’s actual performance against each of the performance goals established at the outset of the year. Performance goals for fiscal 2006 bonuses were based upon the following four corporate financial measures: operating income; free cash flow; economic profit (net operating profit after tax, minus a charge for capital employed in the business, based on the cost of capital); and, earnings per share.