Iger's bonus was reduced by $3 million because Disney's "strong" results did not outperform his targets "by the same extraordinary amount as in fiscal 2012," the board said in a proxy filed with the U.S. Securities and Exchange Commission on Monday.
The reduced 2013 salary also included what Disney said was an increase in the discount rate that caused "a change in the value of his pension benefit of $3.1 million."
The Disney board did not change Iger's $2.5 million salary from 2012 when he earned $40.2 million.
In awarding Iger a $13.6 million cash performance bonus, the board's compensation committee said Disney did beat Iger's four financial performance measures taken together. But the weighted average of 112 per cent of the targets fell below the 132 per cent in 2012.
Those measures include segment operating income, diluted earnings per share on an adjusted basis, after-tax free cash flow, and return on invested capital.
Charles M. Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware, said, "The fact that his compensation went down is a good thing if the company did not reach the same level of performance - it shows internal guidelines working."
Disney also announced that Jack Dorsey, co-founder of Twitter, has been named to Disney's board of directors and will be up for election on March 18. Iger said that "Mr. Dorsey's perspective would be extremely valuable given our strategic priorities."