This news article examines Robert Iger's contract and compensation with The Walt Disney Company. It looks at several "controversial" issues with the CEO's contract, including a "golden coffin" provision.
As a Disney shareholder, albeit, not a BIG shareholder, I have two opposing views on this:
1. If as a CEO, you have to lay off a large part of your workforce, not because you have over-expanded and have a lot of unneeded baggage, but because you can't support them and need to increase your profit margin, then you haven't performed as expected. This should reflect on your bonuses, no matter how well the company's stocks perform.
2. On the other hand, Iger has guided Disney into a direction in which many loyal Disney fans consider to be the next renaissance of Disney. The acquisition of Pixar, and the revival of hand-drawn animation, bring back what many love Disney for. And they ARE still making money, and not losing billions the way the financial and automobile industries are experiencing. His performance as far as upholding the Disney brand has been outstanding. One truly can see that he believes in the product that he is selling.
One can hope that there's some common middle ground between these two. I also think that Iger is using the economic recession to position Disney in a better state to really take off once the recovery kicks in. One can only hope. I definitely am holding on to all my Disney stocks, and will continue to buy more.
Zz.
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