Disney earnings declined about 6 percent, to $1.85 billion, and the company's stock dropped 5.5 percent this year. Recently Disney announced its new cruise ship, the Wonder, will, like its sister ship, see its launch delayed by five months.
So it's not surprising that CEO Michael Eisner, whose salary is $750,000 per year, endured what the financial press called a "nearly 50 percent" pay cut. But Eisner's cut was a $5 million performance bonus.
That is 6.7 times his base salary. In 1997, Eisner's bonus was $9.9 million (13.2 times base, but a mere twelfth of what he gave Michael Ovitz to not work at all). Eisner's mediocre year earned him, presuming an exhausting 80-hour work week, an average of $1,382.21 per hour. Put another way, a new Disney employee who is part of the Service Employees bargaining unit would have to dance and smile for 449 years to earn Eisner's take for this year.
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