The Walt Disney Company has shared executive compensation packages for current CEO Bob Iger, as well as the CFO and others in the current c-suite. This post takes a look at those numbers, Disney’s explanation for the salaries & bonuses, as well as the latest on the succession planning process and the annual shareholder’s meeting.
It’s now been over two years since Bob Iger reentered the building as CEO of the Walt Disney Company, after the Board of Directors pulled off a classic Bob Swap™️, replacing Chapek with once former and now current CEO Bob Iger. The sequence of events culminating in that pivotal moment is still being pieced together, as part of our somehow still-ongoing Battle of the Bobs series. At least one book on the subject is likely to be released this year. We can’t wait.
In his letter to shareholders, Iger discussed how Disney has emerged from a period of considerable challenges well positioned for growth and optimistic about the future. He touted how Disney had “reinvigorated our film studios, which are operating with renewed creative strength.” Disney ranked number one at the global box office in 2024 with a $5.46 billion slate (the first time any studio eclipsed $5 billion since 2019) that included Inside Out 2 and Deadpool & Wolverine, both of which set records. Disney also performed well in TV, winning a number of accolades, including a record-breaking 60 Emmy Awards. Disney+ also continues to grow, with more than 120 million subscribers and profitability for the first time ever.
Of course, you’re probably here for Parks & Resorts, so here’s what Iger said about that business segment in his letter:
Our Experiences businesses remain the gold standard for the industry, and we are confident in the segment’s long-term prospects and committed to investing to drive continued long-term growth. Our footprint continues to grow with multiple projects and expansions currently underway at our parks around the world. We are also expanding Disney Cruise Line, allowing us to bring our most beloved IP into markets where we don’t have theme parks. This past year we debuted a new island destination — Lighthouse Point — and we recently launched our latest ship — the Disney Treasure — in December. In addition, our collaboration with Epic Games will bring together Disney’s beloved brands and franchises in a transformational new games and entertainment universe.
Perhaps what’s more noteworthy here is what was not said. No mention of Walt Disney World, Disneyland–or any theme park by name. It wasn’t exactly a long letter, but ESPN was called out several times. It’s not surprising that theme parks wouldn’t be touted, as nothing major opened at the ones that Disney owns last year (Fantasy Springs is not Disney-owned) and nothing is on tap for 2025 or 2026.
It feels like the parks are going to tread water for the next couple of years, with nothing to drive growth except the theory that a “rising tide lifts all ships” and perhaps maybe finding ways to cut costs and increase revenue. Probably not exactly what theme park fans want to see happen. We’re still hopeful that Walt Disney World has some entertainment surprises up its sleeves for the next two years, but it’s equally likely to be a time of growing pains.
Turning to executive compensation, CEO Bob Iger saw his total compensation package surge in 2024 to a staggering $41.1 million, up from “only” $31.6 million in the previous year. For whatever it’s worth, that’s still down from $45.9 million in fiscal 2021, his last full year of employment at the company before returning to the helm last year shortly after the new fiscal year began. So I guess maybe Bob’s a bargain even at a cool $41 million?
Iger’s compensation is weighted towards performance-based incentives, with only $1 million of the total accounted for by his base salary (up from $865,385 in the previous year). About $18.3 million of his pay came in the form of stock awards, $12 million was stock-option awards, $7.2 million in non-equity incentive plan compensation, and $2.1 million in other compensation, according to the company’s proxy statement filed with the SEC.
Per that same SEC filing, stock awards are subject to performance conditions that are valued based on the probability that such targets will be achieved. Assuming, instead, that the highest level of performance conditions are achieved by the Walt Disney Company’s stock, Iger’s stock award for fiscal 2024 could be worth as much as $31.8 million–just the stock award–for a total of over $50 million.
The point, though, is that Iger’s compensation could vary and is more performance-based now than it was in the past. This is common of media executives, and why there have been crazy headlines about Warner Bros CEO David Zaslav making $250 million per year. He doesn’t actually; that’s his maximum compensation if he hits stock performance targets.
Zaslav won’t accomplish that because he sucks and there’s no way he’s going to more than triple the current share price, which is what would be needed to earn ~$200 million of his theoretical pay. This isn’t to defend the $50 million Zaslav actually makes–he isn’t worth even that–but rather, to defend accurate reporting.
Disney’s SEC Proxy Statement also indicates that CFO Hugh Johnston made $24.5 million last year (a significant increase over his predecessors); General Counsel Horacio Gutierrez earned $15.8 million; HR head Sonia Coleman earned $7.6 million; and comms chief Kristina Schake earned $6.4 million. All of the senior c-suite saw pay raises.
In accordance with SEC rules, Disney provides the ratio of the annual total compensation of its Chief Executive Officer to the annual total compensation of Disney’s median employee. The ratio is a reasonable estimate calculated in a manner consistent with SEC rules and the methodology described below.
To determine this, Disney reviews the annual base salary of the global workforce. Due to population size, the company identifies a band of employees with a base salary that approximates the median base salary among employees. The company calculates the median employee’s total annual compensation for fiscal 2024 (base salary, overtime pay, and the company’s contribution to health insurance premiums), and the median employee’s compensation did not contain distortive compensation features.
The median Disney employee works in a full-time hourly role in parks and has been with the Company for over seven years. For fiscal 2024, the median employee’s total annual compensation was $55,111. Bob Iger’s total annual compensation was $41,122,670. The ratio of these amounts was 746:1. (That’s up from the previous year, when the ratio was 595:1.)
That ratio is always eye-popping. This is probably going to be an unpopular opinion, but I do not necessarily have a problem with high compensation when the exec is clearly responsible for success. When former Disney CEO Michael Eisner exercised stock options worth $565 million in the late 1990s, he was arguably worth every penny after turning the troubled company around and building it into an entertainment behemoth. (Would Disney even exist today but for Michael Eisner and Frank Wells?!)
It’s fair to say that the company had a good 2024–or at least a better year than 2023 or 2022, which was a pretty low bar. At the same time, it also feels like the turnaround process is just getting started. Not only that, but that Iger is fixing problems of his own creation with streaming, ESPN, and even the output at the studios. (I’d like to think that creativity is back at the fore in filmmaking, but I’d be more reassured if all the top performers weren’t all sequels.)
At this point, things are going better but the future is still uncertain for Disney. There are big question marks about linear television, ESPN, streaming, debt, and more. Whatever growth occurs with the theme parks won’t be an organic increase in demand, and even the 5-year plan is uncertain.
Given that, I look at those median (and below!) Parks & Resorts employees, in particular the frontline Cast Members, and can’t help but think that they were the ones who were the difference-makers. Once again, Parks & Resorts has kept chugging along and had a record fiscal year, even with nothing new opening. Cast Members on the frontlines, are doing the hard work and heavy lifting to make magical memories and keep people coming to the parks.
This blog has repeatedly advocated for higher pay for Cast Members. Again, this is not a matter of trying to score easy points. It is selfish. Quality Cast Members who are treated right, feel valued, and are loyal to the company are a good thing for me, as a guest who can see and feel a difference when Disney takes care of its people. Cast Members are the difference-makers, and the company investing in them is just good business.
I almost ranted about this in response to the news that Disney Cruise Line is increasing recommended gratuities, but the subject of tipping is so fraught that it seemed likely to be misinterpreted. (Off-topic, but I do not think businesses should be offloading compensation decisions to customers, especially ones with clientele in a wide range of countries with different cultural norms around tipping. Just pay DCL Crew Members more. They truly are the gold standard of service!)
As we hear more complaints from readers about Cast Members, higher pay is the very obvious (at least, to me) answer. Companies don’t attract and retain top talent without competitive wages. There are a lot of people who want to work to make the magic for guests and are willing to accept less to do it, but that’s not the norm.
There’s a singular reason why Disney has had to lower its hiring standards, and that’s pay. To be clear, Cast Members are mostly superlative–but to whatever extent you might think they’re not as friendly, knowledgeable, or whatever as they were in 2019 or earlier, the answers to that are morale and money (with a straight line between the latter and former).
A bit of an aside, but this is a huge part of why I love In-N-Out Burger and Buc-ee’s. The family and individuals who own these companies are wealthy. Good for them–they probably deserve it. Not just because they run great businesses, but because they take care of their people and that is immediately evident in the customer experience. It’s an ‘everybody wins’ scenario–what’s not to love?!
Turning to succession planning, Chairman of the Board James P. Gorman had this to say in his letter to shareholders:
As we communicated throughout the year, the Board remains actively engaged in the high-priority work of management succession planning. As Chair of the Succession Planning Committee, I am focused on managing our succession process, and we have continued to make strong progress over the last year. In response to shareholder feedback, I was pleased to share an update on our expected timing to announce a CEO successor in early 2026. The full Board is engaged in and committed to finding the right leader for the Company and we are planning for a smooth leadership transition that will enable Disney’s continued success.
The Board also remains focused on effective Company oversight, which includes regular evaluation and planning to maintain appropriate Board representation across a broad and relevant set of skills and experiences. Five non-management Directors, including myself, have joined the Board since 2021, bringing additional perspectives and expertise to this already high-quality Board. We will continue to seek strong alignment of our Board’s skills, perspectives and backgrounds to oversee Disney’s strategic priorities.
To be completely clear, I also (still) think it’s a good thing that Bob Iger will continue to serve as Chief Executive Officer through December 31, 2026 and that the company will announce his successor in early 2026. He needs the runway for succession planning and to turn things around, and is best situated at making that happens from the perspective of experience and expertise. The almost year-long window between anointing the chosen one and having them take the helm is probably savvy, so long as Iger doesn’t get second (third? fourth? fifteenth?) thoughts about leaving.
When it comes to the long tail of succession planning, it’s probably also worth mentioning the leadership shake-up at Parks & Resorts that just happened, with Disneyland, Disney Cruise Line, and Shanghai Disneyland all getting new presidents. This very well could be setting the table for Josh D’Amaro’s inevitable departure–either to the CEO seat or outside the company if he’s passed over for a promotion–from the Experiences Chairman role. It’ll be interesting to see a front-runner emerge for that because, from the outside looking in, no one has really done anything to impress.
Perhaps we’ll learn more during the 2025 Annual Meeting of Shareholders of The Walt Disney Company, which will be held virtually at
www.virtualshareholdermeeting.com/DIS2025. That meeting will occur on Thursday, March 20, 2025 at 10 a.m. Pacific.
Finally, for someone who is clearly fixated on his legacy, I’m somewhat surprised Bob Iger has such a high compensation package. It would seem like at some point, he’d have more money than he can ever spend, and might want to consider the positive optics of being paid less. Take a $1 salary–or take his actual salary but donate it all to some Disney-adjacent charity if he wants the tax break–and say you’re doing it for love of the game and to ensure that Disney has a strong foundation and is left in capable hands.
If Bob Iger wants to cement his status as the one who rebuilt Disney, that might be the savvy move. Or perhaps not. Maybe Iger realizes that fans will focus on his salary for a day or two, but forget it within a week no matter if it’s $1 or $100 million. The ones who dislike him will just find a different reason to do so, and those who love him will likewise be fans regardless. I don’t know. He’s a lot smarter than me, so he’s probably considered this from every angle.
Need Disney trip planning tips and comprehensive advice? Make sure to read 2024 Disney Parks Vacation Planning Guides, where you can find comprehensive guides to Walt Disney World, Disneyland, and beyond! For Disney updates, discount information, free downloads of our eBooks and wallpapers, and much more, sign up for our FREE email newsletter!
YOUR THOUGHTS
What are your thoughts on Bob Iger’s fiscal 2024 compensation and severance? Think he is “worth” 746x the average Parks & Resorts Cast Member? Do you agree or disagree with our assessment? Any questions we can help you answer? Hearing your feedback–even when you disagree with us–is both interesting to us and helpful to other readers, so please share your thoughts below in the comments!
