The Mouse That Roared

Trust the intellectually dishonest to be, well, dishonest. Eamon Javers writing at Politico.com reports Disney's Bob Iger, at the White House Jobs Summit said:

Disney CEO Robert Iger, for example, used one of the break-out sessions to propose a cut in the corporate tax rate – a move that would cost the Treasury billions in uncollected funds at a time when the deficit is already $1.4 trillion.

“I think that’s where I would start,” Iger said. “It’s definitely an issue not just for the Disney company but for the whole television industry.”

Yes, because helping Disney's bottom line is good for America. Thing is:

Burbank, Calif.-based Disney said it earned $895 million during the three months that ended Oct. 3, compared with $760 million a year ago. Revenue climbed 4 percent to $9.9 billion.

Operating profit at Walt Disney Parks and Resorts fell 17 percent during the quarter to $344 million, on revenue that slid 4 percent to $2.8 billion. Park attendance improved, but ongoing discounts continued to eat into profit margins.

The results capped a difficult fiscal year in which Disney was squeezed hard by the recession. Disney said it netted $3.3 billion for the year, down 25 percent from last year, on sales of $36.1 billion, down 4 percent.

So even in this soft economy, the Mouse earned $3,300,000,000. That's 3300 times $1,000,000. That's serious bank. And against sales of $36,100,000,000. That's over 9% profit!

Disney has had layoffs, forced salaried employees to work hourly shifts, forced hourly employees to take shift cuts, etc., etc. Yet how has Iger's income been affected? 2009 numbers are not in yet, but for 2008, the result is pretty startling:

3. Walt Disney - DIS: Robert Iger earned around $1,965,384 for every 1% his stock dropped, giving him a total salary package of $51.1 million based on DIS shares declining 26% over the past year.

Read more: http://www.marketfolly.com/2009/05/top-10-highest-paid-ceos-of-2008-closer.html#ixzz0ZB3MohBI

$51 million . . . Say the average hourly employee makes $15 per hour, that's $30,000 per year. Iger's compensation package would fund 1700 hourly compensation packages per year. But since he has to keep his profits, the hourly folks who pay rent, and live in apartments, and buy groceries have their jobs cut.

Truth, justice, and the American way.