Disney sounds spitting mad about a new report from Institutional Shareholder Services that urges stockholders to vote against some of the company’s board candidates — and, in an advisory vote, to oppose the compensation agreement for CEO Bob Iger. ISS “has substituted its opinion for the studied analysis and judgment reached by the Board” based on a view of the company that’s “both deeply flawed and out of touch with shareholder interests,” Disney said today in an SEC filing. Yesterday’s ISS report charged that Disney’s agreement to make Iger the company’s chairman as well as CEO gives him too much power and is “an about-face” from the corporate governance reforms it made in 2004. At the time, Disney was fighting the widely held view that it had a weak board that merely rubber-stamped decisions from then-CEO Michael Eisner. ISS adds that Iger’s compensation “has risen sharply over the past five years despite lackluster shareholder returns.” When he becomes chairman, as well as CEO, Iger’s pay package will rise to $30M from $26M. That makes the chairman position “little more than a bargaining chip” for independent directors when they look for a successor to Iger when he steps down in 2016. ISS urged investors to vote against the members of the Governance and Nominating Committee who approved the change: Judith Estrin, Aylwin Lewis, Robert Matschullat, and Sheryl Sandberg. It also called for a “no” vote when shareholders are asked to give their opinion about the compensation arrangement.
In response, Disney says that the board decided that “succession planning would be best served” by having Iger as chairman, and would help “enable a healthy mentoring process” for his replacement. The company never said that it would keep the two jobs separate: The decisions “are necessarily situational and need to be based on an assessment of the structure that would best serve the interests of shareholders.” The company adds that 90% of the board is independent, and has an independent lead director. As for the say-on-pay vote, Disney says that Iger’s “among the most successful and well-regarded chief executive officers in the media industry” and has “delivered exceptional total shareholder return.” Disney says that a $100 investment made in October 2005 when Iger became CEO was worth $171 at the end of 2011. His pay is “entirely in line with the compensation paid chief executive officers of the five other media peers” — News Corp., Time Warner, Comcast, CBS, and Viacom.
Why does he deserve a rasie? Disney’s movies aren’t doing well at the box office. Their shows continually lie at the bottom of the ratings pool. They continue to anger consumers by cancelling beloved shows. These consumers then boycott their entire company, refusing to watch their shows, buy their products or go to their theme parks. Normal people would get fired or demoted for a track record like that.
WOW! So is it finally coming around to bite old Bobbie Iger in his great big ole BUTT! He’s greedy and misogynistic and should be fired. Wake up DIsney shareholders before it’s too late!
Fools think their own way is right, but the wise listen to others.
We were told that two of our soaps were cancelled because of production costs and this person is being paid this much money and and increase also coming. This is totally crazy along with those being laid off by Disney. What are you thinking about. Bob Iger should be the one who is taken out not all those who have been working thier heart and soul for these companies. I agree with the stakeholders who are outrage about this and should do whatever it takes to right the wrong.
Where is he any different from a dictator.Slashing jobs and good programming just to pad his pocket.Iger and Sweeney are the death of ABC.Major voters on the board must be padding there pockets to.They keep him there.No matter how mad fans of abc leave they could care less.I think a total investigation of Disney is warrent.They have turned abc into trash tv.I spend 1 hour 5 days a week on abc and that is for General Hospital.There weekly ratings are only above the CW.Anne Sweeney has totally destroyed ABC and Iger is okaying all this cheap crap they are putting on.GREED!!!
Iger has walked in and took abc bown.He and Anne Sweeney have no regargs for veiwers.There imagine of abc is cheap dime a dozen talk,reality,lifestyle and cooking shows.As I have read Steve Jobs trust is the biggest shareholder in disney and his wife nor none of his trust where in on this vote.There are cancelling shows because of low ratings but the truth is soap fans have shut abc off except for General Hospital.Sweeney and Iger said the genre was dying.But there failed to mention that alot are now veiwing n there soapnet and online and are not being counted and they know it.Plus millions and millions are veiwing in other countries.Yjey would rather have more borig talk and rality shows just because there easirer and cheaper to produce.Doesn’t matter to them how many people have lefted abc.They are cancelling nighttime and saying its because people are not watching.True millions are boycotting abc day and night.Iger and Sweeney need to go before abc goes down in flames.