On October 7, 2011, Walt Disney Company submitted a report to the Securities and Exchange Commission, which officially reported the terms of a new employment contract between the company and President and CEO Robert A. Iger. Mr. Iger`s bonus targets are increasing significantly in the new agreement, but, perhaps more importantly, the new employment contract is expected to be the last between Walt Disney Company and Iger. The terms of his employment contract “remain unchanged,” with the exception of certain provisions, Disney said in an administrative statement. Its annual compensation for the extended period of activity “is set on the same basis as its annual compensation for the 2016 financial year.” For its consulting services, Iger receives a quarterly fee of $500,000 for each of the first eight quarters and $250,000 for each of the last four quarters of the consultation period. “For the three years following the termination of the employment relationship, the company will also provide Mr. Iger with the same security services (other than the personal use of an aircraft provided by the company) as those made available to him as Chief Executive Officer,” the inscription states. The new agreement was signed on October 6, 2011.
She renews Mr. Iger`s mandate at the WDC. The previous contract expired on January 31, 2013. Under the 2011 agreement, Mr. Iger will remain employed in the company until June 30, 2016, when he will retire. The specific terms of the agreement were not disclosed, but the SEC`s submission summarized key changes to the existing agreement. If Iger stays until July 2, 2019, he will receive a cash bonus of $5 million “in addition to a bonus for fiscal 2019 under the company`s management bonus program,” he said. “After the end of his working relationship on the expiry date, Mr. Iger will work for three years as a company advisor to gain access to Mr.
Iger`s unique media and entertainment skills, knowledge and experiences.” However, if Iger were to be terminated without reason, he would receive “a lump sum payment equal to the basic salary that would have been paid if he had been employed until the end of the term of the contract and a proportional annual incentive payment for the services he provided up to the time of his termination.” Iger will benefit from certain share option rights if he is retained by WDC until the end of the 2011 agreement. Ceo`s salaries are a hot topic for shareholder advocates and politicians, and Iger was a high-level goal. Although he handed over the reins to one of his deputies last week – theme park department head Bob Chapek — Iger`s employment contract will continue un changing, according to the company in a show. The 69-year-old will remain with Disney as chairman of the board until December 2021. Disney said Iger would remain “at the request of 21st Century Fox and Disney`s board of directors.” “Leading this great company is a great privilege and I am honoured to have been invited to continue working as CEO until July 2, 2019,” Iger said in a statement.