Institutional Holder Opposes Disney Pay Plan

The College Retirement Equities Fund said it has voted its 7.4 million shares, or 1% of Disney’s stock, against two compensation plans to be considered Tuesday at the company’s annual meeting in Anaheim. The company also said it will withhold support for five directors up for reelection. The vote is part of a growing protest by some major institutions against Disney’s compensation plans in the wake of its big payout to departing President Michael Ovitz and questions about the independence of Disney directors. CREF officials said the compensation plan for Chairman Michael Eisner and a bonus performance plan for Disney executives are “excessive in view of the Disney Co.’s performance over the past five years.” A Disney spokesman responded: “These are performance-based compensation plans, and the only way for executives to profit is if the company does well.”