Robert Iger, chief executive of Walt Disney, saw his payment package drop to $ 21 million in fiscal 2020, from $ 47 million the previous year, which included a large bonus.
Specifically, its previous package had a $ 21.75 million non-equity incentive plan compensation. Last year, that was zero.
CEO Robert Chapek earned $ 14.2 million in the fiscal year ending in September, according to the Disney proxy filed with the SEC on Tuesday.
Both executives had lower base salaries year after year and they voluntarily agreed to reduce them during Covid-19. Iger’s was $ 1.6 million, down from $ 3 million, and Chapek’s was $ 1.8 million. There were no figures for the previous year for Chapek, who took over as CEO in February.
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The pandemic hit Disney hard, shutting down theme parks that account for a third of its revenue. The production was closed and the cinemas went dark. On April 5, the company announced that Iger would give up 100% of his base salary and Chapek 50% of his. (VPs, SVPs and EVPs also saw gradual wage cuts.) They were suspended on August 23.
However, despite Covid’s success, Disney’s year was finally marked by a sharp turnaround in Wall Street’s sentiment about stocks and the company based on the stellar performance of the Disney + streaming service, which has been growing subscribers at a rate extraordinary. On a fast-paced four-hour Investor Day on December 10, executives presented well over 100 company-wide film and TV projects, many aimed at Disney +, leading the new stock records.
In the proxy, the board’s compensation committee, which sets the compensation, noted that Disney’s financial performance and “strong leadership amid incredible challenges” would have earned bonuses for top executives. But the committee and management agreed that “in light of the circumstances this year, no bonuses should be made”.
Executives (many, not all) of the entire media have agreed to similar pay cuts, unheard of in the entertainment industry, which is known for its particularly expensive salaries. Proxies, which disclose the remuneration of a company’s top five executives, will make statements this season in terms of salaries and bonuses, after a year marked by layoffs and leave.
Disney’s fiscal year ends in September, so his proxy statement is usually the first among major media companies. Most records of companies operating in a calendar year arrive in the spring.
The company is holding its annual meeting on virtually 9 March.
The Iger package also included $ 6.9 million in stock premiums, $ 9.6 million in option premiums, $ 1.8 million in what is called a “change in pension value and unqualified deferred compensation gains” and $ 1.1 million in other compensation.
Chapek included $ 6.1 million in stock premiums, $ 3.4 million in options and $ 2.7 million in changes in pension value and unqualified deferred compensation gains.
Netflix announced in late December that President and Co-CEO Reed Hastings is expected to receive $ 34 million in stock options and a salary of $ 650,000 in 2021, Netflix said in a SEC filing on Monday. Co-CEO and content director Ted Sarandos, who receives less of his stock compensation, will receive the same, but with options worth $ 14 million and an annual salary of $ 20 million. This is almost equal to what they were supposed to earn in 2020. Netflix is a rare company that advertises salaries in advance.