Bob Iger at WDW now ... BoD to Follow?

[GoofGoof]

They are paid for. The options allow him (or anybody that is given them) to purchase shares at a specified price. The idea is that when the option is available for execution, the price will be higher than the "strike price."

Regardless, the company must actually sell those shares to the person executing the options. It has to come from shares the company already holds of itself or shares they will purchase on the market. Even if they purchase the shares at a good price, there is still a cost. I suppose they could do it "for free" by issuing new shares but that would dilute the value of the outstanding shares.

I know how stock options work. My point is that it's not a cash outlay and the folks "paying for it" are not the customers but the shareholders.

In today's TWDC the stock options are basically the equivalent of a cash bonus from a cash flow standpoint. They are using treasury stock to cover the exercised options and treasury stock is being replenished from stock buybacks every year. So basically the company buys shares back using cash on hand. Those shares end up in treasury stock and some of them are eventually used when options are exercised. They could just pay a cash bonus and buy less shares back and they would end up with the same amount of cash left for other investment. The difference for Iger and the execs is that the options are only worth something if the price goes up. For shareholders it's at least a guarantee that if their investment goes down the execs will end up with less compensation. In that case Iger would need to "get buy" on his millions of base salary alone

 

[216bruce]

This thread is sort of a combination 'Speakers Corner' in Hyde Park and general catch-all of vented spleens. "And to think, it all started with a Bob."

 

[Lee]

When you say a bit for Epcot and MK will that money go towards new rides/attractions like for example could we see changes to Tomorrowland like the removal of Stitch or a couple pavilions at Epcot get completely redone?

I am not aware of how they plan to spend the money.

 

[janoimagine]

They are paid for. The options allow him (or anybody that is given them) to purchase shares at a specified price. The idea is that when the option is available for execution, the price will be higher than the "strike price."

Regardless, the company must actually sell those shares to the person executing the options. It has to come from shares the company already holds of itself or shares they will purchase on the market. Even if they purchase the shares at a good price, there is still a cost. I suppose they could do it "for free" by issuing new shares but that would dilute the value of the outstanding shares.

I know how stock options work. My point is that it's not a cash outlay and the folks "paying for it" are not the customers but the shareholders.

My bad guys, it was a tounge and cheek comment. My sarcasm was clearly not represented as it was intended.

 

[PhotoDave219]

I am not aware of how they plan to spend the money.

Interesting how everyone instantly hears budgets and then thinks it's going to find their favorite thing

 

[CaptainAmerica]

Interesting how everyone instantly hears budgets and then thinks it's going to find their favorite thing

Monorail expansion says what?

 

[s8film40]

Monorail expansion says what?

Haha, monorail expansion would probably only cost 1 Billion, and on top of that Disney could probably just have RCID pay for it.

 

[danlb_2000]

I have to agree with you but its not just at the Parks and Resort Division. Something big is happening here in Burbank and they wont tell any of us lower corporate officers. People around me are getting fired divisions being rebranded or laid off. Something is happening and no one is saying anything. Its not rumors and its not being reported by the LA times or anybody really. It makes me disillusioned that i work for such greedy people. Disney has assets of over 100 billion U.S. dollars yet cost cuts are going off the roof and the spreadsheets don't add up. Personally i feel someone or something is planning a buyout or launch of a big project.

Isn't this a pretty common thing for a company the size of Disney?

 

[sshindel]

Interesting how everyone instantly hears budgets and then thinks it's going to find their favorite thing

I have very little hope for enough being allocated to my favorite thing to make a difference.
But, I think you've finally convinced me over the years that DHS is in more need at the moment.

 

[Kman101]

No the sarcasm is fine and translated, but CaptainAmerica seems to want to be the forum police.

 

[MattM]

Isn't this a pretty common thing for a company the size of Disney?

Of course. But it's way more fun to go completely off the deep end, apparently.

 

[Pirate665]

Wonder coming back to life would take a major sponsor throwing major money at it.

Heck, repairing the building alone could be a problem financially once they get into it. Could be real problems under there. At least its not a sinkhole...

Body wars could be revived, Frontiers is done, CC is a major referb to commit to. And the theaters are all reusable.

 

[Goofywilliam]

Is it to much to ask for a beautiful omnimover ride through the history of animation (especially Disney animation) to replace the art of animation building? Imagine riding through a zoetrope!!! The ride truly could be beautiful, and it would be a much needed people eater for the park.

 

[mahnamahna101]

Wonder coming back to life would take a major sponsor throwing major money at it.

Heck, repairing the building alone could be a problem financially once they get into it. Could be real problems under there. At least its not a sinkhole...

Body wars could be revived, Frontiers is done, CC is a major referb to commit to. And the theaters are all reusable.

I'd rather they just start from scratch, using the expansion space behind Energy, too:

Cranium Command revamp with Inside Out
Adventures Through Inner Space revival
Body Wars-esque family coaster as the headliner

They could even have the two rides share show scenes (like PeopleMover does in Tomorrowland, to some degree)

 

[CinematicFusion]

It's looking like 2021 is the year to go to Disneyworld.
1. Avatar
2. Night time show at AK.
3. Possible new show at Epcot
4. Frozen ride at Epcot.
5. Imagination remodel again....maybe?
6. Star Wars land
7. Pixar land
8. I'm sure a new nighttime show at MK
9. Update to Peter Pan?
10. 3 billion being spent over the next 6 years is impressive.

Who knows what else will be spruced up for the 50th celebration.

 

[P_Radden]

It's looking like 2021 is the year to go to Disneyworld.
1. Avatar
2. Night time show at AK. RIvers of Light
3. Possible new show at Epcot
4. Frozen ride at Epcot.
5. Imagination remodel again....maybe?
6. Star Wars land
7. Pixar land Pixar Place
8. I'm sure a new nighttime show at MK
9. Update to Peter Pan?
10. 3 billion being spent over the next 6 years is impressive.

Who knows what else will be spruced up for the 50th celebration.

Here are a few more:

11. Disney Springs Completed along with new exit from I4
12. Various Resort refurbishments and the competition of WL DVC
13. New Innoventions West attraction
14. MK Hub completed along with new TS restaurant in Adventureland

 

[1023]

Here is one more:

00. Disney Springs Completed along with new exit from I4
00. Various Resort refurbishments and the competition of WL DVC
11. New Innoventions West attraction
00. MK Hub completed along with new TS restaurant in Adventureland

Fixed that for you...

*1023*

 

[PhotoDave219]

I have very little hope for enough being allocated to my favorite thing to make a difference.
But, I think you've finally convinced me over the years that DHS is in more need at the moment.

And likewise, Epcot needs help too.

It's looking like 2021 is the year to go to Disneyworld.
1. Avatar
2. Night time show at AK.
3. Possible new show at Epcot
4. Frozen ride at Epcot.
5. Imagination remodel again....maybe?
6. Star Wars land
7. Pixar land
8. I'm sure a new nighttime show at MK
9. Update to Peter Pan?
10. 3 billion being spent over the next 6 years is impressive.

Who knows what else will be spruced up for the 50th celebration.

1 - yes
2 - yes
3 - nope. Don't bet on it.
4 - 900 guests/hr
5 - Nope. Unlikely.
6 - yes.
7 - yes
8 - unknown.
9 - maybe.... Just maybe.
10 - yup!

 

[aladdin2007]

I can see them closing imagination to save money, and doing a new 3d movie (inside out) instead in the theater. Then the ride would sit dormant for who knows how long, we all know how that turns out....lets hope not though but dont put it past them.
Its probably going to take a sponsor to do anything there, even though that wasnt the case with nemo into the seas.

 

[Cesar R M]

That's just speculation. The data doesn't support it. And DVC is a built-in insurance policy against that very risk.

Good point on DVC.
DVC is being used as an Anchor that forces DVC users to either sell points or "suck it" and having to pay whatever "surge pricing" the WDC wants for admission.