Conflict Over Eisner’s Salary

Apparently, Michael Eisner’s salary has migrated from facts to urban legend.

Yes, in the first 15 years he was at Walt Disney Co. he was fabulously paid. But he does not get, as John Jaeger asserts [“Unimpressed by Eisner’s Disney Stock Purchase,” Letters, Aug. 25], $200 million annually.

In 1996, Eisner cashed in options and netted $565 million. He was able to do so because he took over a moribund company on the verge of breakup and increased its value twentyfold in 12 years, creating $43 billion in new wealth for shareholders. This payout occurred in November 1996, making the news.

The single event was treated as news in three succeeding years, giving the impression he got $500 million for three straight years. He didn’t.

Disney has done lousy recently. And so has Eisner’s pay. He’s been getting only a few million a year lately. Plenty for you and me, but nothing close to $200 million.

Richard Murphy

Whittier