Iger, who made $36.3 million, including bonuses, last year, signed a deal in December that makes him eligible to receive $142 million in stock, a base salary of $3 million and a $20 million bonus when Disney officially acquires several Fox properties after a $52 billion acquisition deal was made last year.
Fifty-two percent of shareholders voted against Iger's raise, with 44 percent voting in favor of it.
Aylwin Lewis, the chair of Disney board's compensation committee, said the board accepts the results and "will take it under advisement for future CEO compensation."
"We believe that the terms of Bob's extension are in the best interests of our company and our shareholders, and essential to Disney's ability to effectively maximize long-term value from this extraordinary acquisition," Lewis added.
Shareholders voted against the pay raise as Disneyland Resort workers protested outside to demand a living wage and held up signs that read, "#stopdisneypoverty," the Los Angeles Times reported.
According to a study conducted by the Urban & Environmental Policy Institute at Occidental College, Disneyland Resort workers have dropped 15 percent since 2000, from $15.80 an hour to $13.36, adjusted for inflation.
Disney denied the study's calculations and said workers make an average of $17.80 an hour.