Disney cuts CEO pay, adds Twitter co-founder to board

Tue Dec 24, 2013 6:24am IST

Jack Dorsey, chairman of Twitter and CEO of Square, takes part in the Techonomy Detroit panel discussion held at Wayne State University in Detroit, Michigan September 17, 2013. REUTERS/Rebecca Cook/Files

Jack Dorsey, chairman of Twitter and CEO of Square, takes part in the Techonomy Detroit panel discussion held at Wayne State University in Detroit, Michigan September 17, 2013.

Credit: Reuters/Rebecca Cook/Files

Related Topics

Stocks

   

(Reuters) - Walt Disney Co (DIS.N) has slashed Chief Executive Bob Iger's fiscal 2013 compensation by 15 percent with a bonus cut, and named Twitter Inc (TWTR.N) co-founder Jack Dorsey an independent board director.

Dorsey, widely credited with creating Twitter alongside fellow co-founders like Ev Williams, Biz Stone and Noah Glass, will stand for election at Disney's March 18 annual meeting, Disney said in a statement on Monday.

At 36, Dorsey, who is also CEO of fast-growing payments startup Square, will be by far the media conglomerate's youngest board member.

Dorsey, who sent the company's first tweet in 2006 - "just setting up my twttr" - spent the past few years molding San Francisco-based Square into a billion-dollar payments company whose matchbox-sized card readers are a common sight in coffee shops, corner stores and food trucks across the country.

In November, Twitter's initial public offering valued Dorsey's roughly 4.9 percent stake in the messaging service at about $1 billion.

"Jack Dorsey is a talented entrepreneur who has helped create groundbreaking new businesses in the social media and commerce spaces," said Iger, who is also Disney's chairman. "The perspective he brings to Disney and its Board is extremely valuable."

SMALLER BONUS

Iger's bonus was reduced by $3 million because Disney's "strong" results did not outperform his targets "by the same extraordinary amount as in fiscal 2012," the board said in a proxy filed with the U.S. Securities and Exchange Commission on Monday.

The reduced 2013 salary also included what Disney said was an increase in the discount rate that caused "a change in the value of his pension benefit of $3.1 million."

The Disney board did not change Iger's $2.5 million salary from 2012 when he earned $40.2 million.

In awarding Iger a $13.6 million cash performance bonus, the board's compensation committee said Disney did beat Iger's four financial performance measures taken together. But the weighted average of 112 percent of the targets fell below the 132 percent in 2012.

Those measures include segment operating income, diluted earnings per share on an adjusted basis, after-tax free cash flow, and return on invested capital.

Disney also said on Monday that Judith Estrin, a former Cisco Systems Inc (CSCO.O) chief technology officer, will retire from the board at the March 18 annual meeting. The company cited its tenure policy, which limits board service to 15 years.

(Reporting by Ronald Grover; additional reporting by Gerry Shih; Editing by Richard Chang)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

SONY PLAYSTATION 4

REUTERS SHOWCASE

Incorrigible Kim

Incorrigible Kim

Megaupload's Dotcom, facing legal threat, launches political party.  Full Article 

Cyber Crime

Cyber Crime

Canadian charged in 'Heartbleed' attack on tax agency.  Full Article 

Google Revenue

Google Revenue

Google Q1 revenue misses Wall Street targets.  Full Article 

High Demand

High Demand

Sony sells more than 7 million Playstation 4 consoles.  Full Article 

Mt Gox Update

Mt Gox Update

Mt Gox set to liquidate as court denies rehabilitation.  Full Article 

New Culture

New Culture

New CEO Nadella pushes data culture at Microsoft.  Full Article 

Upbeat on S5

Upbeat on S5

Samsung executive says Galaxy S5 to outsell S4, sees Q2 rollout for Tizen phone.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage