Results 1 to 13 of 13
  1. #1

    •   
    • Minion
    • Offline

    Join Date
    Jan 2005
    Location
    In a 3D movie theater
    Posts
    4,834

    Another Day, Another Excessively Paid CEO - SeekingAlpha 1/16/07

    Another Day, Another Excessively Paid CEO
    SeekingAlpha 1/16/07

    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.
    Full Story: Another Day, Another Excessively Paid CEO
    Check out my other blog:

  2. #2

    • time to go
    • Offline

    Join Date
    Sep 2005
    Posts
    1,547

    Re: Another Day, Another Excessively Paid CEO - SeekingAlpha 1/16/07

    WHOA!! Did anyone else catch this part?

    Messer. Iger also received $666,000 expense reimbursements for auto benefits ($14,400), personal air travel ($67,879), and security ($578,656)


    Almost $600,000 for security? What kind of enemies does this man have?
    "Dope smoking insects and reckless driving always work." -- Cousin Orville

  3. #3

    •   
    • Minion
    • Offline

    Join Date
    Jan 2005
    Location
    In a 3D movie theater
    Posts
    4,834

    Re: Another Day, Another Excessively Paid CEO - SeekingAlpha 1/16/07

    Quote Originally Posted by BlueSkyDriveBy View Post
    WHOA!! Did anyone else catch this part?

    Messer. Iger also received $666,000 expense reimbursements for auto benefits ($14,400), personal air travel ($67,879), and security ($578,656)


    Almost $600,000 for security? What kind of enemies does this man have?
    I don't know, but for $600,000 he could have his own version of the Pope Mobile as he tools around the Disney lot...

    It does make you wonder... Does Disney have a secrite service?

    Walt's "badge" he showed off in that DL 10th Aniversary show may not have been far from truth...
    Check out my other blog:

  4. #4

    • time to go
    • Offline

    Join Date
    Sep 2005
    Posts
    1,547

    Re: Another Day, Another Excessively Paid CEO - SeekingAlpha 1/16/07

    Quote Originally Posted by cellarhound View Post
    I don't know, but for $600,000 he could have his own version of the Pope Mobile as he tools around the Disney lot...
    "Dope smoking insects and reckless driving always work." -- Cousin Orville

  5. #5

    • time to go
    • Offline

    Join Date
    Sep 2005
    Posts
    1,547

    Re: Another Day, Another Excessively Paid CEO - SeekingAlpha 1/16/07

    Another excerpt from the original article:

    In terms of its impact on executive compensation, albeit better transparency is not sufficient in of itself to temper Board governance, in our view, when journalists report on annual pay packages, they need to do more digging—find the additional awards buried in the footnotes—to buttress—often inflammatory—headlines of excessive executive pay.
    For example, are stakeholders aware that in ‘under-performing’ years, Mr. Iger is exempt from performance-linked target bonuses? Pursuant to his Employment Agreement, dated as of October 2, 2005, Iger was not to receive a target cash bonus of no less than $7.25 million.

    The Board insists the “minimum annual bonus and long-term incentive award opportunities do not guarantee Mr. Iger any minimum amount of compensation.”
    Huh? Ignoring anemic share and financial performance in 2005, Iger still received a ‘non-guaranteed’ cash bonus of $7.7 million.
    The value of unexercised in-the-money options that Iger holds, exercisable and unexercisable was valued at an additional $14.4 million and $7.1 million, respectively (as of 9/30/06).



    So... even when WDC sucks canal water, Iger is still guaranteed a cash bonus of no less than $7.25 million.





    If anyone other than a contracted executive performs poorly in their job, good luck on retaining said job, let alone be handsomely rewarded for it.

    CEOs and other high-level executives in CorporateAmerica™ are grossly overpaid. Period.
    "Dope smoking insects and reckless driving always work." -- Cousin Orville

  6. #6

    • MiceChat News Team
    • Thanking the Academy
    • Offline

    Join Date
    Jul 2005
    Location
    Cartoon Wasteland
    Posts
    4,828
    Blog Entries
    68

    Re: Another Day, Another Excessively Paid CEO - SeekingAlpha 1/16/07

    And yet, no one seems to mind when Johnny Depp gets paid $20 million each for POTC2 and POTC3.

  7. #7

    • ...is fading out....
    • Offline

    Join Date
    Jul 2006
    Posts
    13,449
    Blog Entries
    3

    Re: Another Day, Another Excessively Paid CEO - SeekingAlpha 1/16/07

    Things like this are why Tomororwland is why it is, etc. You see, this is NOT Mr. Iger's park - it's Walt Disney's. If Disney was getting this pay, he'd put it right back into his 'baby' - so to speak.

    I highly doubt Mr. Iger will put any of his EXTREME pay back into the betterment of Walt Disney's Magic Kingdom - because it's not 'his'.

  8. #8

    • Member
    • Offline

    Join Date
    Jul 2005
    Location
    La Canada, CA
    Posts
    689

    Re: Another Day, Another Excessively Paid CEO - SeekingAlpha 1/16/07

    Quote Originally Posted by Disneyland Daddy View Post
    Things like this are why Tomororwland is why it is, etc. You see, this is NOT Mr. Iger's park - it's Walt Disney's. If Disney was getting this pay, he'd put it right back into his 'baby' - so to speak.

    I highly doubt Mr. Iger will put any of his EXTREME pay back into the betterment of Walt Disney's Magic Kingdom - because it's not 'his'.
    Technically, Disneyland belongs to the shareholders. Iger owns a lot of Disney shares as does Steve Jobs, the largest single shareholder along with many other disney shareholders.

  9. #9

    •   
    • Minion
    • Offline

    Join Date
    Jan 2005
    Location
    In a 3D movie theater
    Posts
    4,834

    Re: Another Day, Another Excessively Paid CEO - SeekingAlpha 1/16/07

    Quote Originally Posted by BlueSkyDriveBy View Post
    So... even when WDC sucks canal water, Iger is still guaranteed a cash bonus of no less than $7.25 million.

    What is more upsetting is Iger was "handed" the job... There was no compitition no real barganing for pay...

    Me? I am willing to do the same job for $500 thousand a year (this is matches compensation that Costco CEO makes) with a stock option incentive capped at $1 mill, with an expense account of up to $250,000 and keys to the company retreat house in Colorado.

    Yeah, that would about do it for me... I could live comfortably on that...

    Of course I could flip out and do what Steve Jobs does, and take one dollar.
    Check out my other blog:

  10. #10

    • Banned User
    • Offline

    Join Date
    Jul 2005
    Location
    Florida
    Posts
    2,624

    Re: Another Day, Another Excessively Paid CEO - SeekingAlpha 1/16/07

    ummm walt would have put it into his pocket actually he would have put it into wed or retlaw and then his pocket. That was how things were done when he was alive.

    Iger may have been "handed " the job but from what I can see under his rule the stock has increased at least 50%. I believe his contract is for five years so lets see how he does for the rest of the deal. I do think that his bonus should be attached to performance and not have a guaranteed amount. frankly I don't like bonuses per say. I think instead salaries should be evaluated on an annual basis and if the CEO hits certain performance targets then his salary for the next year is increased based on the target amounts. that way part of the salary is performance based and part isn't.

  11. #11

    • A Ghost at Disneyland
    • Offline

    Join Date
    Apr 2005
    Location
    Skyway to Tomorrowland
    Posts
    849

    Re: Another Day, Another Excessively Paid CEO - SeekingAlpha 1/16/07

    When Iger's compensation is recorded in the accounting spreadsheets, essentially it will be recorded as "employee compensation." It is plain wrong to pay any individual that much money. Yet the mindless and ethically challenged "experts" on Wall Street think paying such a large pecentage of total employee compensation to a single individual is just fine. And companies that don't follow that policy get punished:

    Case in point: reduce Iger's pay to $500k and spend the left over $24 million on raises for hourly employees. This will cause said Wall Street schmucks to have a brain aneurysm and tell everyone the company (Disney) is being mismangaged and the stock price will plumment. Even though not one penny more is being spent on employee compensation.

    This same scenario is being played out in companies all across the USA and in Europe. The middle class is being eliminated before our very eyes. Soon there will only be the rich and the very poor. They are spending as much as they always have on labor, only its being concentrated in the upper crust of management.

    As more people realize this, Mr. Iger's need for security is bound to go up. Maybe thats why he spends so much money on it. I feel sorry for anyone who has to live in fear like that.

  12. #12

    • time to go
    • Offline

    Join Date
    Sep 2005
    Posts
    1,547

    Re: Another Day, Another Excessively Paid CEO - SeekingAlpha 1/16/07

    Quote Originally Posted by DisneyDarian View Post
    As more people realize this, Mr. Iger's need for security is bound to go up. Maybe thats why he spends so much money on it.
    Could also explain why the shareholder meeting is not being held in Orlando this year, as was promised at the last shareholder meeting in Anaheim. Iger's afraid of too many disgruntled WDW cast members showing up with pesky questions, eh?

    Fear comes in many different flavors.
    "Dope smoking insects and reckless driving always work." -- Cousin Orville

  13. #13

    • Pilot EdForceOne
    • Offline

    Join Date
    Jun 2006
    Posts
    15,667

    Re: Another Day, Another Excessively Paid CEO - SeekingAlpha 1/16/07

    Quote Originally Posted by cellarhound View Post
    Me? I am willing to do the same job for $500 thousand a year (this is matches compensation that Costco CEO makes) with a stock option incentive capped at $1 mill, with an expense account of up to $250,000 and keys to the company retreat house in Colorado.
    Costco CEO makes $350k+$103k in 'other' comp.. and is sitting on 1.2 million stock option shares.. valued last Dec at 15.4 MILLION. He also sold a cool 12.7 million's worth last year. So 500k is a bit decieving. CEOs almost never get pure salary.. their whole life is performanced based.

    Plus, I don't know how fair of a comparison that is.. the CEO of a retailer vs the CEO of a global entertainment conglomerate (with 5x the profit revenue too).

    Disney is a top brand in the world.. you would expect the management to be getting top-grade pay when they perform.

    And as for the Steve Jobs comment about $1.. yet just another form of creative compensation. The $1 doesn't count the millions Apple awarded him in terms of other compensation (options, a jet, the expenses to run the jet, etc)

Similar Threads

  1. What Is The Least You Ever Paid For A Gallon Of Gas
    By tiggerfan in forum MiceChat Main Lounge
    Replies: 43
    Last Post: 03-17-2008, 04:44 PM
  2. Whats the most you have ever paid?
    By garbear in forum MiceChat Main Lounge
    Replies: 34
    Last Post: 11-18-2007, 07:35 PM
  3. Woohoo, I paid off my Car!!!
    By Villains Fan in forum MiceChat Main Lounge
    Replies: 48
    Last Post: 09-05-2007, 09:46 PM
  4. Somebody paid WHAT for WHAT on EBAY???
    By PanTheMan in forum Disney Interactive and Game Industry Discussion
    Replies: 54
    Last Post: 06-29-2006, 07:02 AM
  5. Getting paid to tell them why you quit?
    By ExJungleSkipper95 in forum Disneyland Resort
    Replies: 50
    Last Post: 06-24-2006, 11:41 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •