Shareholders at Disney voted down a nonbinding endorsement of the compensation given to Chairman and Chief Executive Robert Iger following an increase in December. About 52% of votes cast at the company’s annual meeting expressed displeasure with Mr. Iger’s new pay package.
Iger’s new deal—tied to performance targets and the closing of Disney’s planned 21st Century Fox takeover—is worth up to $48.5 million a year over the next four years, plus a $100 million equity grant.
It is primarily the equity grant that the shareholders are concerned with, but I’m not sure why. Have they seen what Tesla has offered to Elon Musk?
Tesla Inc.’s board of directors submitted a proposal to give Chief Executive Elon Musk an estimated $2.6 billion payday stretched out over a decade.
That’s a lot more than $100 million.
But here was Musk’s response when asked about the compensation plan by the New York Times:
“None of it is intended for dynastic wealth creation,” he said. “The reason that it’s important to me personally is that there’s some pretty big things that I want to do.”
“I want to contribute as much as possible to humanity becoming a multi-planet species,” he said, alluding to a goal he has talked about often, including having people live on Mars. “That obviously requires a certain amount of capital.”
Iger has to start thinking big like Musk if he wants to defend his compensation package.
Perhaps the two of them could team up and plan to put a Disney-themed park on Mars.
The main attraction could be a ride called The Robber Barons of Olympus Mons.
(See top of page for my artistic rendering of Disney on Mars)