The Walt Disney Corporate has shared govt repayment for CEO Bob Iger, in addition to the CFO and others within the present c-suite. This appears to be like at the ones numbers, Disney’s reason for the salaries & bonuses, in addition to the newest at the succession making plans procedure and the yearly shareholder’s assembly.
It’s now been 3 years since Bob Iger returned as CEO of the Walt Disney Corporate, after the Board of Administrators pulled off a vintage Bob Change™️, changing Chapek with as soon as former and now present CEO Bob Iger. The palace intrigue continues to play out in our still-ongoing Combat of the Bobs sequence. The newest ‘building’ in that got here not up to two weeks in the past, albeit not directly, by the use of 11 Surprises Printed About Walt Disney Imagineering’s Comeback, After Chapek, Cutbacks & Pricey Errors. No less than one e book at the matter is perhaps launched this yr. We will’t wait.
In his letter to shareholders, Iger mentioned it was once a yr of serious growth for The Walt Disney Corporate as “we complex our strategic priorities and charted a trail for the long run.” This incorporated Disney’s $6.5 billion yr on the field workplace, streaming profitability, and ESPN’s evolution
In fact, you’re most certainly right here for Parks & Accommodations, so right here’s what Iger stated about that trade phase in his letter:
We complex our formidable funding plans throughout our Stories phase. We’ve extra growth initiatives underway at each and every of our theme parks globally than ever sooner than, together with the biggest growth ever of Magic Kingdom at Walt Disney Global, in addition to 5 further cruise ships scheduled for release past fiscal 2026 and a brand new theme park deliberate for building in Abu Dhabi. Those strategic investments will reinforce our best-in-class experiential choices and gas our talent to proceed interesting to new and world audiences.
The one factor that in reality caught out to me right here was once the language used for Disneyland Abu Dhabi–that it’s a brand new theme park deliberate for building. Perhaps it’s simply oddly worded, however this has ‘thought of a plan’ power. It’s no longer but being advanced, it’s deliberate for building. Without reference to the place that venture in fact stands (and I’m guessing maximum of you don’t care, anyway), it’s nonetheless my company imagine that it’s a 2030s venture. And most certainly nearer to 2035 than 2030.
Turning to govt repayment, CEO Bob Iger noticed his general repayment package deal building up to $45.8 million for the 2025 fiscal yr, up “most effective” 11.5%. His package deal incorporated a $1 million wage, $21 million in inventory awards, $14 million in choice awards, and $7.25 million in non-equity incentive plan repayment.
For reference, Iger’s repayment within the earlier yr was once $41.1 million, up 30% from the the $31.6 million within the earlier yr. For no matter it’s price, that’s nonetheless down from $45.9 million in fiscal 2021, his ultimate complete yr of employment on the corporate sooner than returning to the helm ultimate yr in a while after the brand new fiscal yr started.
It’s additionally down from the best-ever top of $65.8 million in 2018, when it soared 80% in one yr on account of bonuses from the twentieth Century Fox acquisition. Perhaps Bob’s a discount even at $45.8 million?!
Hugh Johnston, the Leader Monetary Officer, won a complete repayment of $20.2 million (down from $24.5 million–because of a one-time signing bonus); Horacio Gutierrez, the Leader Prison Officer, was once awarded $16.3 million (up from $15.8m). Different key leaders incorporated Leader Other folks Officer/HR head Sonia Coleman, who earned $7.4 million in general comp, and Leader Communications Officer Kristina Schake, whose general pay reached $6.2 million.
Based on SEC laws, Disney supplies the ratio of the yearly general repayment of its Leader Govt Officer to the yearly general repayment of Disney’s median worker. To decide this, Disney evaluations the yearly base wage of the worldwide personnel as of the ultimate trade day of the fiscal yr, September 26, 2025.
The median Disney worker works in a full-time hourly position in theme parks and has been with the Corporate for over 8 years. For fiscal 2025, the median worker’s general annual repayment was once $56,932. Bob Iger’s general annual repayment, together with the Corporate’s contribution to medical insurance premiums, was once $45,851,157.
The ratio of those quantities was once 805:1. That’s up from ultimate yr, when the ratio was once 746:1, and from the yr sooner than that, when it was once 595:1. You’ll most certainly surmise the ratio within the years sooner than that, and it’s basic trajectory (despite the fact that it was once certainly over 1,000:1 when Iger was once paid $65 million in 2018).
That ratio is at all times eye-popping. As I’ve stated sooner than, I don’t essentially have an issue with top repayment when the exec is obviously chargeable for luck. When former Disney CEO Michael Eisner exercised inventory choices price $565 million within the overdue Nineties, he was once arguably price each and every penny after turning the bothered corporate round and construction it into an leisure behemoth. (Would Disney even exist as of late however for Michael Eisner and Frank Wells?!)
It’s truthful to mention that the corporate had a excellent 2025–or a minimum of a greater yr than 2023 or 2022, which was once a beautiful low bar. On the identical time, it sort of feels like there must be a greater method–like ‘worth over alternative’ or one thing–for govt repayment. There’s no longer in reality a marketplace fee for govt compensations, since the marketplace is rarely unfastened and undistorted.
No less than on the subject of monster contracts within the NFL or MLB, there’s a statistical foundation for the ones paydays. Certain, enthusiasts might quibble over how a lot gamers are “price,” nevertheless it is a unfastened marketplace. So when the Browns pay Myles Garrett $40 million in line with yr, it’s as a result of that’s the speed that an identical skill instructions. Even though possibly the Browns are a foul instance there, what with the Deshaun Watson contract proceeding to be an albatross for the franchise–the exception that proves the guideline.
In spite of everything, as this ratio continues to develop between executives and frontline Solid Contributors, we will’t lend a hand however suppose that they are those who’re underpaid. As soon as once more, Parks & Accommodations has saved chugging alongside and had a report fiscal yr, even with not anything new opening. Solid Contributors at the frontlines, are doing the exhausting paintings and heavy lifting to make magical recollections and stay other people coming to the parks.
This weblog has many times advocated for upper pay for Solid Contributors. This isn’t an issue of seeking to rating simple issues. It’s egocentric. High quality Solid Contributors who’re handled proper, really feel valued, and are unswerving to the corporate are a excellent factor for me, as a visitor who can see and really feel a distinction when Disney looks after its other people.
Firms don’t draw in and retain most sensible skill with out aggressive wages. There are a large number of individuals who wish to paintings to make the magic for visitors and are prepared to just accept much less to do it, however that’s no longer the norm. There’s a lone legitimate explanation why Disney has needed to decrease its hiring requirements since 2020, and that’s pay. The exertions pool, pageant, and the entirety else–it’s all excuses.
Solid Contributors are the difference-makers, and the corporate making an investment in them is solely excellent trade. Even though you suppose the standard of Solid Contributors has long gone downhill over the previous couple of years–in fact, particularly when you suppose that–it is smart to pay most sensible of marketplace charges for frontline Solid Contributors.
That’s the way you draw in the most efficient workers, and the exertions marketplace for frontline theme park workers in Anaheim and Orlando maximum indisputably is a unfastened marketplace. Frontline Solid Contributors are the Myles Garretts to the executives’ Deshaun Watsons.
Turning to succession making plans, Chairman of the Board James P. Gorman had this to mention in his letter to shareholders:
Control succession making plans stays a most sensible precedence for the Board, reflecting its significance to trade continuity and long-term shareholder worth. Oversight of the method is led by means of our devoted Succession Making plans Committee, and all administrators have actively participated in a rigorous and ongoing analysis of possible successor applicants, together with direct engagement, efficiency evaluate and attention of management functions aligned with the Corporate’s long-term technique. The appointment of the following CEO will probably be decided by means of the whole Board, and we lately be expecting to announce the appointment of the Corporate’s subsequent CEO in early 2026.
To be utterly transparent, I (nonetheless) suppose it’s a excellent factor that Bob Iger will proceed to function Leader Govt Officer via December 31, 2026 and that the corporate will announce his successor in early 2026. The just about year-long window between anointing the selected one and having them take the helm is most certainly savvy, as long as Iger doesn’t get 2nd (3rd? fourth? 15th?) ideas about leaving.
We’ve already mentioned this matter at period, maximum lately in Josh D’Amaro Beneficial properties Steam as Bob Iger’s Successor. Right here’s Why He Will have to be Disney’s Subsequent CEO. The primary sentence of that name is the place the pony race turns out to face; the second one is our place, as a totally-unbiased weblog that cares most effective about theme parks and no longer such a lot films, streaming, ESPN, and many others.
My hope is that the following time we revisit this subject, it’ll be as a result of a statement has been made, naming Josh D’Amaro as Disney’s subsequent CEO. Timing-wise, it’s protected to be expecting that as early because the morning of the following profits name on February 2, 2026 or as ultimate because the morning of March 18, 2026, which is the day the Annual Assembly of Shareholders of The Walt Disney Corporate will probably be held. Our expectation is that it happens a minimum of a couple of days prematurely of the yearly assembly, however both method, the clock is ticking.
From our viewpoint, the extra attention-grabbing query at this level–and one who hasn’t been mentioned to dying is who will change Josh D’Amaro as head of Parks & Accommodations. He’s possibly going to vacate that place come what may, so who will get promoted? And when they’re promoted, who else leaves Disney or is shuffled into a faux, face-saving task?
In the past, we’ve discussed the next as being names to wait for the following head of Parks & Accommodations/Stories: Thomas Natacha Rafalski, Présidente of Disneyland Paris; Thomas Mazloum, President of Disneyland Hotel; and Michael Moriarty, Govt Vice President and Leader Monetary Officer of Disney Stories. I’d now upload Joe Schott, who changed into President of Disney Signature Stories (DCL, and many others.) when Mazloum left that position. I had the danger to speak to him lately and was once inspired; he is aware of Disney in and out, could be very right down to earth and human. I’d be stunned if the present President of Walt Disney Global is within the working; I’m more or less stunned he’s nonetheless round.
The pony race to exchange Bob Iger as CEO is clearly extra thrilling, however the downstream adjustments are similarly consequential. That’s very true all the way through an technology of enlargement and growth, and at a time when Walt Disney Imagineering is coming round again and delegating extra authority to site-level portfolio executives. Which means that much more selections are being made in Florida, France, Hong Kong, and many others. versus being dictated from on top in California. Having the best other people within the different Parks & Accommodations management positions over the following 5 years will subject so much.
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YOUR THOUGHTS
What are your ideas on Bob Iger’s fiscal 2025 repayment and severance? Suppose he’s “price” 805x the typical Parks & Accommodations Solid Member? Is Iger a Myles Garrett or Deshaun Watson? Do you compromise or disagree with our evaluate? Any questions we will mean you can resolution? Listening to your comments–even whilst you disagree with us–is each attention-grabbing to us and useful to different readers, so please percentage your ideas beneath within the feedback!
