Disney CEO Iger's Pay Up 12 Pct To $31.4M In 2011

Published January 21, 2012 1:58AM (EST)

LOS ANGELES (AP) — Walt Disney Co. has awarded CEO Bob Iger a 2011 pay package valued at about $31.4 million, up 12 percent from a year ago, according to an Associated Press analysis of data disclosed in a regulatory filing on Friday.

The company said Iger merited the raise, citing Disney's growth in the face of a challenging economic environment. Burbank-based Disney generated record-breaking profit and revenues for fiscal 2011.

The boost in Iger's compensation came as Disney's share price slid 12.5 percent to end the company's fiscal year on Oct. 3 at $29. A turbulent period for stocks toward the end of last summer drove share prices for many companies sharply. The overall market and Disney's shares have since recovered to close on Friday at $39.31.

Iger, 60, received a base salary of $2 million, unchanged from the prior fiscal year, according to documents filed with the Securities and Exchange Commission.

He also received stock awards valued at $8.1 million at the time they were granted, an increase of 10 percent from a year earlier, and option awards valued at about $4.8 million on the day they were granted, up 9 percent from the year before.

Iger's performance-based cash bonus grew 15 percent from the prior year to about $15.5 million.

The executive's other compensation jumped 21 percent to $962,932, including $371,439 for personal use of company aircraft and $561,303 for security costs.

Iger's total compensation in fiscal 2010 was $28 million.

Disney's net income for fiscal 2011 grew 21 percent to a record $4.8 billion, or $2.52 per share, aided by the success of films such as "The Lion King" in 3-D, and improved revenue from its consumer products, TV and theme park businesses.

Annual revenue rose 7 percent to a record $40.89 billion.

The Associated Press formula calculates an executive's total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.

The value that a company assigned to an executive's stock and option awards for 2011 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company's stock in the years after the awards are granted. Most stock compensation programs require an executive to wait a specified amount of time to receive shares or exercise options.

By Salon Staff

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