In a filing this morning with the U.S. Securities and Exchange Commission (SEC), Walt Disney Co. (NYSE: DIS) said it has extended Chairman and CEO Robert Iger’s contract from a previous expiration date of June 30, 2018, to a new expiration date of July 2, 2019. Iger has been Disney’s CEO for 11 years.
Iger’s annual base salary of $2.5 million remains unchanged under the terms of the new contract extension, but that’s not where most of his compensation comes from. According to the company’s February 2017 proxy statement, 92% of Iger’s salary is performance-based.
In 2016, Iger earned $43.9 million, about $1 million less than his total compensation in 2015. In 2014 Iger was paid $46.4 million in salary and bonuses, primarily stock and restricted stock units. Although Iger’s salary slipped last year, he was still the fifth-highest paid CEO among the S&P 500 index companies.
Iger presents a pretty strong case, both for his contract extension and his total compensation. In the period between 2005 and 2016, Disney’s total return to shareholders has increased by 350%, more than double the S&P 500’s 123% increase over the same period and nearly double the market-cap weighted return of Disney and six peers.
During the 11-year period, Disney’s market cap has grown at a compound annual growth rate (CAGR) of 11%, from $45.8 billion to $147.8 billion. Revenue has grown over the same period at a CAGR of 8%, diluted earnings per share posted a CAGR of 15% and net operating income’s CAGR is 13%.
The two big deals Iger steered to completion were the acquisitions of Lucasfilm and Marvel. The Marvel Cinematic Universe franchise has generated more than $4.2 billion in gross receipts (not all were produced by Disney) from 14 movies, with another 10 due from Disney by 2020.
The $4 billion purchase of Lucasfilm brought the Star Wars franchise, the second-most popular franchise ever, to the House of Mouse. Only the first Star Wars movie, released in 1977, has higher gross receipts than Disney’s “Star Wars: The Force Awakens,” released in 2015.
Disney stock was up about 0.5% at noon Thursday, at $112.71 in a 52-week range of $90.32 to $113.16. The 12-month consensus share price is $117.27.
Cash Back Credit Cards Have Never Been This Good
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
