As the Disney/Fox merger comes closer to completion, the Walt Disney Company has tweaked Bob Iger’s compensation package, removing $13.5 million in potential salary and incentive awards.
According to Hollywood Reporter, the Walt Disney Company has amended Iger’s total possible annual compensation, starting with the reduction of his base salary, which will be decreased by $500,000, bringing the total to $3 million after the 21st Century Fox transaction closes.
In the Hollywood Reporter’s report, they also state that an SEC 8-K filing on Monday said Disney will eliminate the annual $8 million increase in Iger’s annual target bonus, and instead maintain an annual target bonus of $12 million.
The amended pay package also sees Disney cutting $5 million from Iger’s annual target long-term incentive award, which will bring it down to $20 million.
Bloomberg reports Iger’s target annual compensation will be $35 million after the deal with Rupert Murdoch’s 21st Century Fox Inc. is completed, 28 percent less than the initial $48.5 million target.
The news of Iger’s compensation changes come right before Disney’s annual shareholder meeting, taking place this Thursday, March 7. The call will be taking place following Iger and the studio entering a new agreement that will amend his current employment agreement that was set in place back in December 2017, when the news of the Disney and Fox merger was first announced.
Only back in January did we report that Iger’s income had risen 80% to $65.6 million after the CEO had led Disney through a pivotal year of growth for the larger-than-life media company, which included the merging of 21st Century Fox.
Iger spent much of 2018 in a bidding war with Comcast over most of the entertainment assets of 21st Century Fox, which ended with Disney agreeing to pay $71.3 billion for the Fox film and TV studio, the broadcast network, some cable channels, Star India and more.
2018 was also a good year for the company’s shares, which were nearly 21 percent higher in Disney’s fiscal year, ending September 28, 2018. In The Walt Disney Company’s fiscal year, it earned $12.6 billion (up 40 percent) on revenue that rose 8 percent to $59.4 billion.
Looking back at the history of Iger’s annual incomes, the CEO has seen some ups and downs. According to The Hollywood Reporter, in 2017, Iger made a reported $36.3 million and in 2016, he made $43.9 million.