Disney's Bob Iger got 20.3% raise to $40.2 million

Disney chief executive officer Bob Iger received $40.2 million in compensation for last year, which was 20.3% more than the previous year, according to the Mouse House's proxy filed Thursday evening with the Securities Exchange Commission.

For the fiscal year that ended in September, directors raised all parts of Iger's compensation package: $2.5 million in salary, along with $9.5 million in stock awards, $7.8 million in option awards, $16.5 million in non-equity incentives, $3.1 million change in pension value, and $800,700 for other compensation. Among the "other compension" was $574,331 for security and $190,439 for personal air travel.

The Mouse House said that it must have Iger use the corporate jet for personal travel "for security reasons." It added that the pension's current value rose partly because interest rates dropped and "does not result in any increase in the benefits payable to participants."

Disney said that during meetings with shareholders, "there was broad agreement with the Compensation Committee's assessment that Mr. Iger's performance as chief executive officer has been excellent." In the past three years, his compensation was "near or below the median compensation awarded to his peers," it added.

However, Iger made 6.3 times the median pay for the four other executives cited in the proxy. Chief financial officer Jay Rasulo, the second highest-paid executive, made $12.2 million -- a 10.2% increase.

According to corporate governance watchdogs, CEO pay is excessive when it's over three times the average for other top executives.

At Disney's annual meeting, set for March 6 in Phoenix, shareholders will be able to express their opinions about the pay package, as well as elect directors.

They will also vote on a proposal that would facilitate the nomation of independent directors.

Supporters say they want to stop the concentration of power at the entertainment giant, including the decision to make Iger both chairman and CEO. The company counters that this would be a distraction and is "in search of a problem that does not exist at this Company."

As well, Disney's against a proposal that the chairman be required to be an independent director. This would disqualify the chief financial officer. Management is responsible for running Disney, while the board needs to "oversee management," according to the proposal.

But Disney alleges that this measure "seeks to replace the current, clear and workable standard for electing a Chairman with a vague and unworkable standard." Criticizing the decision to make Iger both the chairman and CEO "is unfounded," the company adds.

In the fiscal year ending September 30, Disney shares jumped by 76%, while the Standard & Poor's 500 index rose by 30%.


[Via Deadline New York -- www.deadline.com/2013/01/disneys-bob-iger-collects-40-2m-compensation-for-2012-a-20-3-raise/]