DIS Walt Disney Co

By R.T. Watson 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (March 12, 2020).

Walt Disney Co. shareholders approved a referendum outlining former Chief Executive Robert Iger's compensation for 2019, with less support than the previous year's vote.

At the company's annual meeting Wednesday, the nonbinding resolution on executive compensation, including Mr. Iger's $47.5 million package, passed with about 53% of shareholder votes. The same resolution was accepted at 2019's meeting with 57% voting in favor.

In 2018, the referendum was rejected, causing the company to alter Mr. Iger's proposed compensation.

Mr. Iger stepped aside as CEO last month, announcing that he would remain as executive chairman and focus on creative affairs. Former parks and resorts head Bob Chapek was named CEO.

Shareholders weren't scheduled to vote on the newly appointed Mr. Chapek's pay, but his target compensation is set at $25 million annually. Mr. Iger is scheduled to retire at the end of 2021.

Mr. Chapek, who has been at Disney for 27 years, inherits a company that has enjoyed unprecedented success under Mr. Iger, spurred by a series of acquisitions, including Pixar Animated Studios, Marvel Entertainment and Lucasfilm Ltd.

This year was already set to be a challenging one for Disney as its slate of films lacks the firepower of 2019. But managing 2020 has become significantly more difficult as the coronavirus epidemic continues to spread around the world. Theaters in key markets like China have faced mass closures.

Disney was forced to close its theme parks in Shanghai and Hong Kong. Earlier this week, the Shanghai Disney Resort partially reopened at a limited capacity.

While the number of coronavirus cases in the U.S. rises, Disney hasn't announced any plans to close its parks in California or Florida.

At Wednesday's meeting in Raleigh, N.C., Mr. Iger sought to assure shareholders that Disney would successfully weather what he called a "global crisis."

"These are challenging times for everyone," he said. "But it's also important to note that throughout our company's nearly centurylong history, Disney has been through a lot, including wars, economic downturns and natural disasters."

(END) Dow Jones Newswires

March 12, 2020 02:47 ET (06:47 GMT)

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