Bob Iger compensation for 2013

[ford91exploder]

Yah Buffet...kind of a hypocrite in a way...sometimes I am right on with his slant on things and other times it's like well I can't even relate to this in the slightest.

Of course Disney was rewarded for his hard work and efforts! That is what is a big motivator for entrepreneurs and risk takers in business...while the money is not always the deciding reason why they do what they do, it is certainly a measuring stick.

Akio Toyoda the current CEO of Toyota Motors presided over a increase in profits of 30% and global sales of 212 Billion dollars,

Yet he makes 1.2M US in TOTAL COMPENSATION he fits the 'Buffet Rule' and this fits with my opinion that US C level executives are grossly overpaid relative to their counterparts worldwide based on the financial results of their respective companies.

What does Toyota do that US executives do not, They build cars that people want to buy, Toyota is doing ENGINEERING not Accountaineering like most US companies these days.

 

[LuvtheGoof]

Oh he was a entrepreneur, but he was rewarded ($) for his skill set which he used to build Disney.


He "deserves" it because the free market determines it.

And you really believe Buffet only makes 9 times what his average employee makes? Really? His net worth is $58 billion dollars:

http://www.forbes.com/profile/warren-buffett/

So his average employee would have a net worth of how much???

Yeah I would say he makes a tad more than 9 times.......

I was speaking only of the salary he draws as the CEO, not his net worth. I'm sure Bob Iger's net worth is quite a bit more than his yearly salary as well. I guess we will have to agree to disagree on this point. I simply do not believe that any one person deserves compensation of $30 million for one year, no matter what that person has done. He does not work any harder than the front line CMs do for their money.

 

[LuvtheGoof]

Imposed by who the company/industry or the goverment? Who is the determining and enforcing entity?

So if a basic grounds keeper at WDW makes $10 per hour x 40 hours per week he would make $20,800 a year. So Iger would only make $416,000 per year to run a company driving $45 Billion is sales last year? Seems a wee bit out of whack to me.

I certainly would not do it for $416k, well maybe because I could get all kinds of good Disney benefits free but not for that kinda of money alone! I mean if they let me live in the castle......

Actually, it's not the lowest paid employee, but 20 times the AVERAGE pay for the company. In Disney's case, that is about $56,800, so Iger's salary would be capped at around $1.2 million. If the CEO of a company that has global sales of $212 billion in a year earns $1.2 milllion, that is very fair for someone running a $45 billion company. Heck, make it 30 or 40 times the average, and he still comes in at $2.4 million. Why wouldn't that be fair compensation?

 

[mp2bill]

Irrelevant. Completely. Not trying to diminish the value that an organization's low-level employees have on its output, stock price or perceived value, but a run of the mill cast member doesn't have any formal responsibility over Disney's stock price. What they do may affect the stock price in some very, minuscule way (which may or may not affect the stock in the aggregate) But their actions don't have distinct and measurable results to the stock price. Sorry. I know you were hoping I'd go "Gee, you got me." But its just not true.

Once you compare a CM's role with with the policy and decision making that occurs at governance and upper management level, you *do* have people who's actions result in measurable changes to the stock price and (here's the important part) charged with the responsibility over the stock price. Iger's job description likely outlines a direct responsibility over the stock price as charged by his direct report, the Board of Directors. A cast member helping guests out of their ECVs and onto the boats at the Jungle Cruise, does not have such a responsibility outlined in his/her job description. There might be some rah-rah team mission statement that communicates to CMs that "what they do really matters" and they're just as important as Bobby is. But at the end of the day, if the stock price tanks 50% due to internal issues, said Cast Member's job isn't at risk anywhere near the the way Iger's is.

Nope, I never thought you'd go, "Gee, you got me." I figured you'd (like most people) stay entrenched with your original opinion. The point I was making is that while the people at the upper-levels make the decisions that either get them paid a load of money or get them fired, it's the people at the lower level that carry out those decisions. Without those people, the decisions of upper-management don't mean squat.

Furthermore, my statement was commentary (in as few words as possible) on the fact that while we're all in this together, the people at the top are the only ones that have any power to negotiate sweet deals that include stock options and huge bonus. If a CM or even an Imagineer ever tried negotiating that type of deal, they'd tell him/her to pound sand because they know there'd be hundreds more ready to fill that position right behind them.

Overall, for what he does, I personally think that $2.5 million is enough, but I certainly wouldn't be against him making even $10 million in salary. Where the big bucks really come into play, obviously, is in the bonuses and stock options. I don't see where it'd be unreasonable for Disney, or any company, to offer that kind of deal to all its employees so that they could all share in the profits from their collective work.

One last thing: You're ill-informed if you think that CM's jobs aren't at risk in the same way Iger's is if the stock price tanks 50% in a year. That's how companies (CEOs) save money and increase profits...by canning their lower level employees when their own poor decisions cause their stockholders' to lose money.