Los Angeles Times: Disney Withdraws Executive Tax Benefit Amid Criticism

Los Angeles Times: Disney Withdraws Executive Tax Benefit Amid Criticism

March 18 2011

Just days before investors would have their say on Walt Disney Co.’s executive pay, the entertainment giant changed the contracts of its top executives to remove a generous perk that had come under fire from an influential shareholder advisory firm.

Institutional Shareholder Services, an advisor to large shareholders, had recommended voting against the compensation packages of Iger and the others that would have required Disney to reimburse the executives for an excise tax.

“It’s interesting that they ended up caving,” Steven Hall, managing director for compensation consultant Steven Hall & Partners, said about Disney.  “We were surprised by how violently they reacted against ISS.  It was the kind of thing companies gripe about in boardrooms but don’t do anything about.”