The Walt Disney Company has changed Bob Iger’s compensation package. The news comes through a regulatory filing from November 30th. Moving forward, Iger’s compensation will be tied to the company’s performance. This comes as Disney nears closing its deal for the acquisition of Twenty-First Century Fox.
With the new deal, Iger will earn no shares if the relative total shareholder return is less than or equal to 25 percentile of the total shareholder return of companies in the S&P 500 index. Conversely, he will earn all 937,599 shares if Disney outperforms the bottom 65 percent of firms on the same index.
This new compensation plan comes after a rare challenge to Iger’s pay by shareholders earlier this year.
“In line with the Disney Board’s pay-for-performance philosophy, the amendments to Mr. Iger’s contract establish more rigorous performance requirements for his equity award than those reflected in the original contract,” a Disney spokesperson said.
Originally Iger was set to receive up to $48.5 million per year between salary and bonuses for four years following the acquisition of Fox. However, at this year’s shareholder there was a non-binding vote opposing executive pay that received a majority. This lead to the changes in Bob Iger’s compensation plan.