The two executives' new employment agreements extend to 2013. Iger's previous contract had been set to expire on September 30, 2010. Staggs' expires on March 31, 2008.
LOS ANGELES (Reuters) - The Walt Disney Co <DIS.N> said in a securities filing on Friday that it has signed new five-year employment contracts with Chief Executive Robert Iger and Chief Financial Officer Tom Staggs.
The two executives' new employment agreements extend to 2013. Iger's previous contract had been set to expire on September 30, 2010. Staggs' expires on March 31, 2008.
Iger became Disney's CEO on September 30, 2005, following the departure of longtime and controversial Chairman and CEO Michael Eisner. His new contract took effect on Thursday and runs through January 31, 2013, according to a securities filing.
It increases Iger's annual performance-based minimum bonus to $10 million from $7.25 million, and reset the minimum value of his annual long-term incentive compensation award to $9 million from $8 million.
!ADVERTISEMENT!Iger also was given an option of 3 million shares of Disney common stock with a seven-year term and an exercise price of $29.505. That strike price represents the average of the high and low trading prices of Disney common stock on January 31.
The option is set to vest in five annual installments, and was awarded as "an inducement" for Iger to sign the new agreement, the company said in a securities filing.
Iger forfeits any unvested shares if he leaves the company prior to the end of the new contract. Disney also revised the termination provisions in the new agreement.
Under the new contract, Iger receives a cash severance equal to the base salary owed him for the remainder of his contract and a pro-rated bonus, based on the target annual bonus, if he is involuntarily terminated without case or ends his employment for good reason.
Staggs' new contract becomes effective April 1 and sets his annual salary at $1.25 million with two yearly increases of $75,000 and two subsequent annual increases of $50,000.
He received a one-time grant of 250,000 restricted stock units equal to one share of Disney common stock. Vesting of the shares is contingent on his performance.
Iger and Staggs have presided over a 27 percent rise in Disney shares, record earnings growth, and the acquisition of Pixar Animation Studios.
Shares of Disney closed up 73 cents, or 2.4 percent, at $30.66 on Friday on the New York Stock Exchange.
(Reporting by Gina Keating, editing by Richard Chang)
