Walt Disney Co. has decided to drop a controversial provision in the contracts of its top execs regarding the payment of the excise tax on the golden parachutes of four top execs, reports the Los Angeles Times. Shareholder advisor firm, Institutional Shareholder Services, told investors to not vote for the compensation deals for CEO Robert A. Iger, CFO James A. Rasulo, General Counsel Alan N. Braverman and Parks and Resorts Chairman Thomas O. Staggs over the provision, which would have the company liable to pay the tax on severance packages that are more than three times the employees annual salaries.

Paul Hodgson at GovernanceMetrics International told the paper that the provision appears as the company giving the middle finger to government controls on excessive severance packages.

Originally, Disney called the Institutional Shareholder Services' warning as "unwarranted' and advised investors to ignore it because the board already moved to remove the tax payment from future contracts.

Disney's next shareholder meeting takes place on March 23 in Salt Lake City.