Here the information direct from the highest sources. These are quotes taken from Disneys Proxy Statements found at
http://www.disney.com:
From the FY2000 Statement:
Mr. Eisner's bonuses for fiscal 1997 and 1998 were determined under the Annual Bonus Performance Plan described above, and beginning in fiscal 1999 bonuses were to be determined pursuant to a bonus formula based on a compounded earnings growth rate of the Company above a specified level. (See "Employment Agreement with Michael D. Eisner" below.) However, in November 1998 the Company requested a renegotiation of the bonus formula pursuant to a provision of Mr. Eisner's employment agreement that permits such a renegotiation under certain circumstances. The Company and Mr. Eisner subsequently entered into an amendment of his employment agreement to provide that Mr. Eisner's bonus for fiscal year 1999 would be determined under the Company's Annual Bonus Performance Plan, rather than pursuant to the bonus formula, and that a new bonus plan would be negotiated for future years.
From the FY2001 Statement:
As Chief Executive Officer, Mr. Eisner is compensated pursuant to an employment agreement entered into in January 1997. The agreement, which was further amended in June 2000, extends through September 30, 2006, subject to earlier termination under certain circumstances. The agreement, as amended, provides for an increase in the annual base salary from $750,000 to $1,000,000, the first increase Mr. Eisner has received since 1984. In addition, the agreement provides that Mr. Eisners bonuses will be determined pursuant to the Companys Annual Bonus Performance Plan (or any successor plans thereto) for the remaining fiscal years during the term of his agreement. Mr. Eisners bonus for fiscal 2000 was determined under the Annual Bonus Performance Plan by the Executive Performance Subcommittee as described above.
In normal language, his bonus was tied to predetermined formula based on the growth of the company, but the contract was renegotiated so that it was awarded by the board (most of whom he appointed) at the end of the year. To get this change, Eisner agreed to forgo his 1999 bonus but that was quickly made up in 2000. Somewhere online is a great article by the consultant who put together Eisners original contract but who now feels the changes are a betrayal. Ill pass along the link when I find it.