Tuesday, January 20, 2009

Disney's Iger Skips SOME Bonus Payments

I guess it is common news on the bonus payment for Bob Iger by the Disney Board. This news report indicates that Iger is forgoing some of the bonus payment.

Iger received a $2 million salary and a $13.9 million bonus for fiscal year 2008, ended in September, according to the entertainment giant's proxy statement filed with the Securities and Exchange Commission.

His salary remained unchanged, while his bonus was up only slightly as Iger decided to forgo $2.4 million in additional bonus money as a gesture of goodwill.


How "goodwill" is this gesture?

To me, a lot of the drop in Disney stocks is definitely not anything he can control. Certainly, the Disney company is doing almost everything it can to shore up its products, and aggressively promoting its theme parks. And when compared to other media company, Disney is certainly doing a lot better than them.

Still, Disney stocks has tanked lately. And there's talk of a layoff. For me, as soon as there is a layoff at any company, then the company should seriously consider if the CEO and other executives deserves a bonus, especially such outrageously high bonus, that can easily be used, in turn, for the salary of dozens of people. I haven't heard of a massive layoffs at Disney, even though they are slowing down in hiring.

It will be interesting to see what happens in 2009.

Zz.

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