Eisner’s Pay Rises 23% in 1997

Walt Disney Co. plans to elect its board members annually rather than staggering the elections, and paid Chairman Michael Eisner $10.65 million in fiscal 1997, up 23% from a year ago, according to a regulatory filing.

The 55-year-old Eisner, also Disney’s chief executive, saw his total pay rise from $8.65 million as he led the media and entertainment company to record revenue and earnings during the fiscal year, according to the company’s proxy statement filed with the Securities and Exchange Commission.

That total doesn’t include Eisner’s recent exercising of options on 7.3 million shares, a transaction in which he reaped about $565 million. Eisner took that action in December after the close of Disney’s 1997 fiscal year on Sept. 30.

Disney also said, amid criticism that Eisner had too much influence over the board, it will put the once-yearly election of directors to a shareholder vote at its annual meeting in February. Previously, about a third of Disney’s 16 board members were elected annually for a three-year term.

Staggered boards “are something we instituted in the 1980s when we were in danger of being taken over,” said Disney spokesman Tom Deegan. “Now we are of a size where that is no longer necessary.”

Eisner has transformed Disney in 15 years from a moribund theme park-and-movie company with $1.7 billion annual revenue into one of the world’s largest entertainment companies with revenue of $22.5 billion. Disney’s share price has risen 29-fold, adjusted for splits and other actions to $95.81 since Eisner took over.

Eisner was paid $750,000--unchanged since 1984--and awarded a bonus of $9.9 million, which rose from $7.9 million a year ago. Last year, Eisner signed a 10-year contract and was awarded options to buy 8 million shares. The package exceeded the one paid to former President Michael Ovitz, who resigned Dec. 27. Ovitz was awarded $38.9 million in cash and options for 3 million shares.