Walt Disney Co. Chief Executive Michael Eisner was granted a $5-million bonus last year, even as the company’s stock plunged 34% from its high.
Disney’s board awarded the bonus, which Eisner elected to take in stock, for the ”effectiveness and quality of Mr. Eisner’s leadership of the company in a difficult economic environment,” according to the company’s proxy statement filed on Tuesday with federal regulators.
Eisner also was rewarded for setting the stage for the company’s expected turnaround, the board said. Eisner presented a five-year growth plan last year after pressure mounted from the board and investors to improve performance.
Disney has said it expects earnings to increase 25% to 35% this year, with continued growth in 2004.
Eisner can receive half his stock in two years and the rest when his contract expires in 2006. He did not receive a bonus in 2001. In 2000, Disney’s board awarded Eisner an $8,5-million cash bonus. The board also gave a vote of confidence to Disney President Robert Iger. It awarded him a $4-million bonus in 2002, extended his contract by one year and raised his annual salary to $2-million — twice the amount Disney pays Eisner.
Bonuses also were awarded to Peter Murphy, senior executive vice president, CFO Thomas Staggs and Louis Meisinger, Disney’s former general counsel. The bonuses were awarded because the company met net income targets set by the board, according to the proxy statement.
Disney reported net income of $1,24-billion in fiscal 2002, which ended September 30. That compares with a loss of $158-million in 2001, due mainly to one-time charges.
Disney shares rose 10 cents on Tuesday to close at $16,85 on the New York Stock Exchange. The shares are down from their 52-week high of $24,64 last April. – Sapa-AP