Disney Withdraws Executive Golden Parachute Tax Benefit
The company will no longer pay tax on any severance package for Robert Iger and three other executives.
Walt Disney Co. has changed the contracts of top executives so that its not paying the tax on any future substantial severance packages, the Los Angeles Times reported Friday.
This means Chief Executive Robert Iger and three other senior executives would not have that sizable perk in the event they lost their jobs in a sale or merger.
On Friday, filed documents with the Securities and Exchange Commission showed that it had removed the controversial provision, known as an excise tax gross-up, from the existing contracts of Iger, Chief Financial Officer James A. Rasulo, General Counsel Alan N. Braverman and Parks and Resorts Chairman Thomas O. Staggs.
Disney’s move drew praise from corporate-governance experts, who said such benefits seem as though Disney had been trying to skirt Internal Revenue Service guidelines designed to protect shareholders.