An influential group of Disney shareholders has opposed the company’s decision to combine the roles of CEO and president role and the pay plan for the Disney boss Bob Iger.
The California State Teachers’ Retirement System (CalSTRS) voted against both moves at the Studio’s AGM and saying that Disney’s “governance and nominating committee actions a return to poor governance practices of the past”.
CalSTRS has about five million Disney shares. It said uniting the CEO and president role creates a disconnect between performance and pay.
“CalSTRS long standing view holds that separating the two positions is in the best interest of a company’s shareholders since the CEO and Chairman jobs have entirely different, and at times, conflicting purposes,” said CalSTRS director of corporate governance Anne Sheehan in a statement. “By not involving the shareholders before reversing a precedent that many see as the best standard of practice in the marketplace, we feel the governance and nominating committee failed in its role as our representatives in the board room.”
Disney, however, confirmed that after its AGM and a board meeting it has proceeded to make Iger CEO and chairman.