Television

Disney spends over a million dollars on Eisner, Iger security

MUMBAI: Media conglomerate Disney spends quite a packet to make sure that its CEO Michael Eisner and COO Bob Iger are safe.

The company revealed that it has spent $735,000 in its latest fiscal year on security systems, security advice and personal protection services for Eisner.

Disney also spent more than $470,000 in the fiscal ended 30 September 2004 on similar security protection for Iger

Media reports indicate that disclosures about the security measures -- which cost Disney a similar amount the prior year -- came in the proxy statement Disney issued in advance of its annual meeting. This will take place on 11 February.

Iger, who also didn't receive any new stock units in 2004, earned $8 million in salary and bonus for the latest fiscal year, and received $3.5 million in payouts for previously awarded long term incentive plan grants. In 2003, Iger received $5.4 million worth of salary and bonus, and $1 million in stock units.

Regarding Eisner's and Iger's security systems and services, Disney said that the measures are incurred as a result of business-related concerns, not for the personal benefit of the executives, and thus should not be classified as compensation.

Meanwhile a report in Dow Jones states that Disney has agreed to formalise the separation of the positions of chairman and chief executive. This should pacify shareholders who want a permanent split of the two jobs.

As part of a negotiated settlement, Connecticut Retirement Plans and Trust Funds has withdrawn its shareholder resolution filed in advance of the 2005 annual meeting in light of the company's pledge to amend its corporate- governance guidelines.

In a separate release, Disney said that the board has amended its corporate- governance guidelines to "embody" the policy after input from shareholders. Disney chairman George Mitchell said, "The board policy, now embodied in the guidelines, embraces principles of good corporate governance that the company is committed to pursuing."

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