Disney CEO Gets Smaller Paycheck Despite ‘Star Wars’ Earnings

Walt Disney paid its Chairman and CEO Bob Iger lower in fiscal 2016 compared with fiscal 2015. It is not immediately known why the CEO got a smaller paycheck year over year in fiscal 2016 despite the successful release of the latest movie in the "Star Wars" franchise.

Business Standard reported that Iger's compensation in fiscal 2016 amounted to $43.9 million. While that may sound a lot of money for regular employees, regulatory filings show that the amount actually represents a 2.3% decrease compared with what the Walt Disney chairman and CEO received from the company in fiscal 2015.

The decline was attributed to lower cash bonus. Los Angeles Times reported that Walt Disney decided to cut Iger's bonus because of weaker growth in fiscal 2016 compared with fiscal 2015. Apparently, Iger's cash bonus is tied to the company's performance, so a weaker performance would always mean lower bonus for the Walt Disney chairman and CEO.

The year-over-year decline in his annual compensation may be sad news for Iger. However, it appears that a good news is already on the horizon for the person leading one of the most successful entertainment businesses in the world.

If Walt Disney managed to hit its performance targets in fiscal 2018, Iger will be able to receive $60 million bonus. That would be three times the $20 million he received for fiscal 2016, so the compensation cut is not really something to cry about for the Walt Disney chairman and CEO.

Walt Disney was able to release several box office hits in 2016 such as "Rogue One: A Star Wars Story," "Zootopia," "Finding Dory" and "The Jungle Book." On top of the good performance in the box office, its theme park also contributed to the company's earnings.

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