Disney is not doing well. People are being furloughed and laid off right and left, but CFO Christine McCarthy just got her contract extended a year and a half until December 30, 2022 and gives her an “equity-based long-term incentive compensation” with a “target award value” of $11 million dollars.
That’s right folks. Disney can’t keep entertainers and cast members because they are financially strapped, but their CFO just got a contract extension with a target award value of $11 million for “each full fiscal year” or annually. $11 million dollar “award.” For doing what? It was things like these “equity-based long-term incentive compensation plans, programs or arrangements generally made available to the most senior executive officers of the Company” and overspending that put Disney in a place that couldn’t withstand a large economic hit.
Here’s some of the details about Ms. McCarthy’s extended contract, directly from the SEC filing:
Her employment extension:
“Upon the terms and subject to the conditions of this Agreement, the Company hereby employs Executive, and Executive hereby accepts employment by the Company, for the period commencing as of July 1, 2015 and ending on December 31, 2022 (or such earlier date as shall be determined pursuant to Paragraph 5). The period during which Executive is employed pursuant to this Agreement shall be referred to as the “Employment Period.”
Her Up to $11 Million Incentive:
“Subject to the terms of this Agreement, Executive shall be entitled to participate in the equity-based long-term incentive compensation plans, programs or arrangements generally made available to the most senior executive officers of the Company. The size of the awards made to Executive shall reflect Executive’s position with the Company and the Compensation Committee’s evaluation of Executive’s performance and competitive compensation practices. For each full fiscal year during the term hereof, Executive shall receive an annual award with a target award value (which value shall be as determined in accordance with the policies and practices generally of Company) of $11,000,000. The preceding shall not limit any power or discretion of the Board of Directors of Disney or the Committee in the administration of any such long-term incentive plan, it being understood, specifically, that the Compensation Committee may adjust (i.e. reduce or increase) the target award value of any award made in respect of any fiscal year based on its evaluation of Executive’s performance and/or any economic, financial and/or market conditions affecting the Company and/or Disney. The actual benefits conveyed to Executive in respect of any such awards may be less than, greater than or equal to the targeted award value, as such benefits will be dependent on a serie of performance and other factors, such as the value of Disney’s common stock and satisfaction of any applicable vesting requirements and performance conditions.”
Even in the write-up they say that it can be adjusted due to “economic, financial and/or market conditions affecting the Company and/ or Disney.” Then why in the world would they even put this out there right now? They are currently being financially impacted by “economic, financial and/or market conditions.” It’s likely not going to change anytime soon.
Then there’s the matter that these are offered to many senior executives. How much money is Disney paying out in incentives and has been paying out in previous years, if she is just one employee and is awarded up to $11 million in a time of economic crisis?
Meanwhile Cast Members are being laid off by the tens of thousands and they are making their own food pantries to help each other. Many Disney blogs are rallying to raise money to help them, but Christine McCarthy gets a contract extension and up to $11 million in “incentives” per year. Again, she is just one of how many?
Disney Wow! Just Wow! You keep raising prices on the customers. You let go thousands of employees and performers. You took billions of dollars to stay afloat. Then this.
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