Disney’s Robert Iger Could Get $142M In Stock Awards

Robert Iger

Walt Disney Co. Chief Executive and Chairman Robert Iger could receive as much as $142 million worth of stock, at the current share price, under a new employment agreement he signed along with his company’s deal to acquire assets of 21st Century Fox Inc, according to The Wall Street Journal.

Iger’s new compensation structure came as the board of directors said it would extend his contract through 2021, from July of 2019, should the Fox deal close.

The amended employment agreement calls for Mr. Iger to receive restricted stock units worth about $27 million at the current share price in four installments between 2018 and 2021, according to a regulatory filing.

He is also eligible for additional equity awards that would be worth $115 million at the current share price. Those equity awards are performance-based and depend on Disney’s total shareholder returns compared with the total shareholder returns of the S&P 500 index.

He will receive a bump in his base salary almost immediately, however, to $3 million as of Jan. 1 from $2.5 million currently. If the deal is completed, his salary will grow to $3.5 million.

Once he is running Fox’s film and TV studio, cable networks, satellite services and other assets along with Disney in its current form, Mr. Iger’s annual target bonus, which is based on performance, would be increased to $20 million from $12 million. In fiscal 2016, he received $20 million, substantially more than the $12 million target, because his performance exceeded expectations.

His target long-term compensation award, a mixture of stock and options, will be $25 million. In fiscal 2016, he received $17.3 million.