Disney’s current CEO is on his way to living a comfortable life. Bob Iger decided to postpone his retirement from Disney until 2021 and will be earning compensation for the postponement. The Institutional Shareholder Services has estimated that Iger can earn up to about $423 million over the next four years. All Iger has to do is continue his stellar performance for the major media company.
The compensation package that Iger could receive will rank him among the decade’s highest-paid CEOs. The Disney board has put plenty of trust in Iger since his promotion to the CEO position on March 13th, 2005.
That trust is not company-wide with 52% of Disney shareholders opposing Iger’s compensations. This is considered to be unusual for shareholders to vote against executive compensation especially since shareholder return has jumped up 414 percent since Iger has become CEO. Disney has stated that the payment is “critical” to keep Iger in the forefront for of the media giant.
Bob Iger has been leading Disney through some of their most significant acquisitions. In 2009, Disney purchased Marvel Studios. Marvel created Marvel Studios to work on film and television productions of their character properties. Marvel still works alone when it comes to the stories in their comics.
Lucasfilm was acquired by Disney in 2012 for $4.06 billion, allowing Disney to begin filming new Star Wars movies. Star Wars Episode VII has made $2.068 billion at the box office alone. Just under half of the Lucasfilm initial purchasing price.
Now with the recent acquisition of 21st Century Fox film, it looks like Disney wants a familiar captain of their ship. The deal for 21st Century Fox is what has solidified such a high payment for Iger. Iger is a vital role in this merger with 21st Century Fox, and Disney wants him on board to see that the deal goes through correctly. With all of these companies under Disney, they will need someone familiar with the day to day of running them smoothly.
Iger’s payment is conditional on his ability to keep the wheels turning on the Disney machine. The shareholders will be following to see if he deserves the compensation, but it will be up to Disney themselves to find out precisely what Bob Iger will be taking home after the next four years.