The Wall Street Journal-20080204-Iger-s New Disney Contract Won-t Expire Until 2013

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Iger's New Disney Contract Won't Expire Until 2013

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Walt Disney Co.'s board granted Chief Executive Bob Iger a contract that will keep him at the Burbank, Calif., entertainment company until at least January 2013.

Mr. Iger's original five-year contract was set to expire in late 2010. The new contract increases Mr. Iger's minimum potential annual performance-based bonus to $10 million from $7.25 million. Mr. Iger's potential long-term incentive pay increases by $1 million to $9 million a year. His base salary remains $2 million annually.

In addition,Disney gave Mr. Iger three million stock options with an exercise price of $29.50 per share. Those options would vest in 500,000-share installments annually, until the fifth year of the contract, when the final 1 million shares vest.

Disney stock closed at $30.66 Friday.

"Bob is a talented and visionary leader, under whom Disney has posted increases in growth and profitability that have consistently exceeded expectations," said Chairman John E. Pepper Jr.

Disney also approved a five-year contract for Chief Financial Officer Thomas O. Staggs, running through April 1, 2013. The agreement puts his salary at $1.25 million a year and provides for annual increases of $75,000 in 2009 and 2010. Mr. Staggs also was awarded 250,000 restricted stock units.