A recent filing with the SEC indicates that Disney CEO Bob Iger sold 372,412 shares valued at $42,667,125.16. However, that is not the amount he gets to keep.
These stocks were vested to Iger, a contract in 2014, and are set to expire at the end of this year. Basically, he needed to sell them.
While they were worth about $42.7 million, Bob Iger would only get to keep part of that money.
The stock options he was granted had a “strike price” on them set at $92.24. This means that he can only profit from the difference between that price and the current stock price at the time of selling off the stocks and after taxes. The price of the stock at the time of sale was just over $115 per share. This means Iger could only profit about $23 per share, dropping the actual amount he can get down to about $8.7 million and then taxes.
Variety mentioned that the stock prices have increased recently over Disney’s predictions about high single-digit earnings growth for the new fiscal year 2025 and even double-digit growth for the next two fiscal years through 2027; although those are just estimates, the stock prices rose significantly.
“Shares of Disney bounced up after the Mouse House on Nov. 14 reported solid earnings for the September quarter, beating Wall Street estimates and boosting the profitability of its streaming business — and also projecting roughly $1 billion in operating profit from Disney+ and Hulu for fiscal 2025. Disney provided financial guidance of high-single digit earnings per share growth for fiscal 2025 — and, unusually, forecast double-digit EPS growth for 2026 and 2027, saying the company is “confident in the long-term prospects for the business and believe we are well positioned for growth.”
Had the company not run into the problems they had, he could have made a lot more money. Thankfully, he got the stocks up at least that high before having to sell before the deadline.
Bob Iger is set to remain as CEO through 2026.
It is unclear how this will impact the stock price when the market reopens.
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Source: Variety
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