By Ronald Grover
Dec 23 Walt Disney Co has slashed Chief
Executive Bob Iger's fiscal 2013 compensation by 15 percent with
a bonus cut, and named Twitter Inc 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
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
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
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
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 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.