Walt Disney Co., the world's second- largest media company, doubled Robert Iger's pay to $24.9 million in his first year after taking over as chief executive officer from Michael Eisner.
Iger, 55, received $2 million in salary, a $15 million bonus, $2.92 million in options, long-term pay of $4.3 million and $666,000 in other compensation in the year ended Sept. 30, Disney said in a regulatory filing today.
Iger, who made $12.7 million in total pay prior to taking over, has overseen a 46 percent rise in Burbank, California- based Disney's shares since becoming CEO in October 2005. Under Iger, Disney bought the Pixar animation studio for $8.06 billion, began selling TV shows and films on Apple Inc.'s iTunes and redesigned its Web site. Profit rose 33 percent last year.
``He deserves a boost in pay,'' said Janna Sampson, director of portfolio management at Oakbrook Investments in Lisle, Illinois, which owns about 650,000 Disney shares. ``Double is more than most of us would have expected.''
Tom Staggs, chief financial officer, saw his pay more than double to $11.2 million in 2006 from $4.56 million the year before. Staggs, 46, received a $1.04 million salary, a $4 million bonus, $4.3 million in long-term pay, $1.1 million of stock options and $790,000 in restricted stock.
Richard Parsons, CEO of Time Warner Inc., the largest media company, was paid $16 million in 2005. Viacom Inc.'s Philippe Dauman, appointed the top executive in September, is receiving $21 million.
Eisner's Pay
Eisner made $10.3 million in his last year as Disney chief.
Shares of Disney rose 22 cents to $35.21 at 4 p.m. in New York Stock Exchange composite trading.
In 2005, Iger received $9.24 million in salary and bonus. He also received $500,000 in restricted stock, other compensation of $1.02 million and options worth $1.93 million. Previously president and chief operating officer, Iger became CEO when Eisner left after more than two decades.
Disney valued the 2006 options as of their grant date using a binomial valuation model, a 5.12-year term, a stock volatility rate of 26 percent, a risk-free interest rate of 4.3 percent, a dividend yield of 0.79 percent and a strike price of $24.87.
Companies should closely tie increases in compensation to gains in share prices or net income, said Charles Elson, director of the University of Delaware's Weinberg Center for Corporate Governance.
``The ultimate question is, `Are you getting your money's worth from the chief executive,''' Elson said in an interview. ``At a certain point you have to ask yourself whether pay of that level is even an incentive any more.''
Disney also said in the filing that Father Leo O'Donovan, former president of Georgetown University, won't stand for re- election to the board at the March 8 annual meeting in New Orleans.
