Walt Disney Company (DIS)

Base salaries

Among the executives whose compensation is reported in the Summary Compensation Table, all but Mr. Murphy (prior to April 2005) and Ms. McCarthy were or are employed pursuant to agreements described under “Employment Agreements” below. Their salaries are shown in the “Salary” column of the Summary Compensation Table.

During fiscal 2005, Mr. Staggs’ salary was increased according to the schedule set out in his employment agreement as described below. Mr. Braverman’s salary was increased to $800,000 effective October 1, 2004 and to $850,000 effective October 1, 2005, and Ms. McCarthy’s salary was increased to $485,000 effective upon promotion to her current position. In each of these cases, the salary changes were based on the factors described above under “Executive Compensation Policies—Salaries.”

Neither Mr. Eisner nor Mr. Iger’s salary was changed during the fiscal year, though Mr. Iger’s salary was adjusted upon adoption of his employment agreement after the end of the fiscal year to provide that the full amount of the salary would be paid on a current basis instead of deferring a portion of his salary as had been the case under his prior employment agreement.

Base salaries

As in the past, during fiscal year 2004 base salaries for executive officers took into consideration a variety of factors, including:

Among the executives whose compensation is reported in the Summary Compensation Table below, all but Mr. Murphy are employed pursuant to agreements described under “Employment Agreements” below. Their salaries are shown in the “Salary” column of the Summary Compensation Table.

Mr. Staggs’ salary was increased during the year from $875,000 to $950,000, as specified in his employment agreement. During the year, the Committee approved an increase in Mr. Murphy’s salary from $875,000 to $950,000. In approving the increase, the Committee took into account the factors described above as well as the Committee’s own assessment of the scope of Mr. Murphy’s responsibilities and the quality of his leadership in promoting strategic growth.