Top Disney Execs Take Pay Cut Amid Coronavirus Pandemic
Bob Iger recently stepped down as Disney CEO, handing the reigns over to Bob Chapek. Both are now doing what they can to help out during this pandemic. Iger has is going to forgo his entire salary and Chapek will take a 50% pay cut during the coronavirus pandemic.
Iger had been one of the top paid executives in the entertainment industry, earning $47.5 million last year, which was actually down from $65.6 million in 2018. The 50% pay cut of Chapek's salary comes from his base which is $2.5 million.
This announcement came in an email from Chapek. The email read:
Effective April 5, all VPs will have their salaries reduced by 20 percent, SVPs by 25 percent and EVPs and above by 30 percent.
The email added:
As we navigate through these uncharted waters, we're asking much of you and, as always, you are rising to the challenge and we appreciate your support. Your dedication and resilience during this difficult time are truly inspiring and it gives me renewed confidence that will we come through this crisis even stronger than before, we have so many times in our company's history.
Disney outlined financial moves it would make to the SEC:
Mr. Iger has agreed to forgo, through the last payroll period in the Company’s current fiscal year, receipt of all but that portion of his base salary necessary to fund, on an after-tax basis, his contributions to continue to participate in the Company’s health benefits plan. He is also waiving his right to receive his car allowance payable during the same period the salary waiver is in effect.
What about the cast members who make the park experience so amazing? The statement from Disney added that Disney...
has been paying its castmembers since the closure of the parks, and in light of this ongoing and increasingly complex crisis, we have made the decision to extend paying hourly parks and resorts castmembers through April 18.
This is still very early in the COVID-19/coronavirus pandemic, so things will be changing daily, but at least some of the CEOs of major companies realize they need to help out their workers. At least on the surface that's how it seems.