Iger entered a new employment agreement on Nov. 30 that created different performance thresholds for Iger to be rewarded shares for Disney’s performance.
Under his previous contract, Iger would collect half of these shares if Disney delivered a performance equal to 25% of the companies in the S&P 500 Index; with more shares awarded as the company hit other, higher milestones. Under the revised employment agreement, Iger would receive fewer shares than originally called for if the company fails to exceed the performance of 60.5% of the S&P 500.
“In line with the Disney Board’s pay-for-performance philosophy, the amendments to Mr. Iger’s contract establish more rigorous performance requirements for his equity award than those reflected in the original contract, further aligning Mr. Iger’s compensation with shareholder value creation,” said a company spokesman. “The decision to implement more rigorous performance criteria reflects feedback received directly from shareholders and underscores Mr. Iger’s and the Board’s confidence that the current strategic direction of the company will generate significant value for our shareholders.”