Shareholder Services Urge Disney Investors To Oppose Dual Role For Bob Iger

Disney‘s annual meeting on March 6 could become interesting after two leading proxy advisory firms — Institutional Shareholder Services and Glass Lewis — recommended that shareholders defy the board on three resolutions up for a vote. The companies support a resolution that would stop Bob Iger from serving both as the board’s chairman and the company’s CEO. The firms also support a proposal that would make it easier for shareholders to nominate directors, and want investors —  in an advisory vote — to oppose the company’s executive compensation plan. ISS notes that Iger’s $40.2M package for the fiscal year that ended in September, a 20.3% raise, was based in part on comparisons with CEO pay at other media companies, including some family controlled ones such as News Corp and Viacom. They “tend to be outliers compared to widely-held public companies” and, with their family ties, probably wouldn’t try to recruit Iger. Disney also “does not provide target goals for the various financial measures” used to compute Iger’s pay. With those concerns, having Iger also serve as chairman might lead to questions about the board’s “willingness and ability to provide independent oversight over management.” (more…)

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