Iger bonus could hit $ 60 million
Disney CEO could see a large payout in 2018 if certain financial targets are met.
Disney’s CEO, who signed a contract extension, could see a large payout in 2018 if certain financial targets are met.
Walt Disney Co. Chairman and Chief Executive Robert Iger, who signed a two- year contract extension Thursday, could depart the company in 2018 with a bonus of as much a s$ 60million.
According to a filing with the Securities and Exchange Commission, the performancebased retention bonus is tied to Disney’s meeting certain operating income targets.
Iger would begin accumulating a bonus if the company were to generate cumulative operating income of more than $ 76.01 billion over a five- year period ending Sept. 29, 2018. The bonus escalates as the company posts a higher operating income, topping out at $ 60 million if the company’s cumulative total is more than $ 78.314 billion during that time.
The bonus is by no means guaranteed. For Iger to receive it, the Burbank company’s operating income would have to increase dramatically. For the five- year period from 2009 to 2013, the company generated cumulative operating income of $ 43.771billion.
However, the company’s annual operating income has increased considerably in recent years.
In 2013, Disney’s operating income was $ 10.724 billion, up8% from a year earlier when it was $ 9.964 billion. It increased 13% from 2011 to 2012.
Save for the prospective bonus, Iger will continue to receive the same annual compensation as under his previous contract. A large portion of his pay is tied to Disney’s financial performance. For the fiscal year that ended Sept. 28, 2013, Iger’s base salary was $ 2.5 million, but his total compensation was $ 34.3 million.
Iger has been chief executive of Disney, the world’s largest entertainment company, since 2005. Iger’s new contract runs through June 2018, and he is expected to leave the company at that time.
Before signing the extension, he’d been set to vacate his post at the end of June 2016.
He told The Times on Thursday that it has been a “privilege” to run Disney and said he relished “having more time to do that.”