Disney CEO Bob Iger’s Pay Hits $31.6 Million in 2023 Amidst Company’s Struggles
Disney CEO Bob Iger’s annual pay reached $31.6 million in 2023, despite the challenges faced by the entertainment giant in rebuilding itself and dealing with activist investor Nelson Peltz. This compensation package includes a base salary of $865,385, stock awards worth $16.1 million, stock-option awards worth $10 million, a cash bonus of $2.14 million, and other compensation totaling $2.48 million, according to a statement filed with the Securities and Exchange Commission (SEC) on Tuesday.
In 2022, Iger earned $15 million in total compensation but served as CEO for less than a year. He returned to lead the company in November of that year, replacing Bob Chapek, who had held the position for two years. Iger’s last full-year pay package was $45.9 million in 2021.
Rebuilding Disney Amidst Challenges
After a series of missteps and the impact of the pandemic on Disney’s theme parks, cruises, movies, TV, and streaming divisions, Iger came out of retirement to guide the company back to growth. His main focus is on reducing costs and exploring licensing opportunities to generate revenue. As part of the restructuring efforts, Iger has already eliminated over 8,000 jobs at Disney.
One of the significant challenges Iger faces is making Disney’s streaming business profitable and devising a strategic plan for ESPN, which may involve selling a stake to the NFL. Additionally, he aims to restore Marvel and Pixar to box office success after a few recent flops.
Activist Investor Nelson Peltz and Board Rejection
While dealing with the company’s struggles, Iger also faces pressure from activist investor Nelson Peltz. Disney’s board of directors recently rejected the two candidates nominated by Peltz’s Trian Fund Management, namely Peltz himself and former Disney CFO James Rasulo. The board also advised shareholders not to vote for the three candidates proposed by Blackwells Capital.
The board has disclosed its recommended slate of 12 nominees for the upcoming annual meeting of shareholders in 2024. The date for the meeting is yet to be announced. The nominees include Iger, Mark Parker (chairman of the Disney board and executive chairman of Nike), Mary Barra (chair and CEO of GM), Safra Catz (Oracle CEO), Amy Chang (director of Procter & Gamble), Carolyn Everson (director of Coca-Cola and Under Armour), and Michael B.G. Froman (president of the Council on Foreign Relations).
Other nominees include Maria Elena Lagomasino (CEO and managing partner of WE Family Offices and current director of Coca-Cola), Calvin McDonald (CEO of Lululemon Athletica), and Derica Rice (director of the Carlyle Group, Bristol-Myers Squibb, and Target).
