California Pension to Oppose Disney Pay, Iger Election to Board
The California State Teachers’ Retirement System, in a governance dispute with Walt Disney Co., will oppose the election of six directors, including Chairman and Chief Executive Officer Robert Iger.
The $158 billion state pension, with 5.28 million Disney shares, will oppose an amendment to the company’s stock incentive plan and cast a “no” advisory vote on executive pay, according to a statement today. Calstrs also will vote in favor of splitting the chairman and CEO roles in the future.
Disney, the world’s largest entertainment company, has come under fire from investors and proxy advisers in the past year over its executive pay and the decision to combine the top jobs under Iger. The Burbank, California-based company’s CEO received $40.2 million in total compensation last year, based on regulatory reporting rules.
“Here we go again, sliding back into a governance structure that has already proved detrimental to the company’s long-term growth and to its shareholders’ interests,” Anne Sheehan, Calstrs director of corporate governance said in the statement. “We’ve been through this fight before, in 2004-05, which resulted in the ouster of then-CEO Michael Eisner and a shareholder revolt that led to the separation of the board chair and CEO positions.”
The company declined to comment beyond what it previously published in the proxy statement for the meeting.
Disney fell 0.1 percent to $54.90 at 12:26 p.m. in New York after hitting an all-time high last week. As of yesterday, the stock had gained 10 percent this year.
At last year’s annual meeting, Calstrs opposed Disney’s executive pay plan and the decision to combine the top jobs. This year’s shareholder meeting is scheduled for March 6 in Phoenix, Arizona.
Read More... http://www.bloomberg.com/news/2013-02-14/california-pension-to-oppose-disney-pay-iger-election-to-board.html?cmpid=yhoo
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