Disney’s Top Execs To Take Pay Cuts Amid The COVID-19 Pandemic
Effective April 5, the company’s chairman, CEO, and other top execs will take pay cuts as a cost-saving measure
Disney chairman Bob Iger—who earned $47.5 million in the last fiscal year—has decided to cut his lavish compensation by 100%, while the company’s CEO Bob Chapek and other senior executives have agreed to give up a percentage of their salaries in the midst of the novel coronavirus (COVID-19) outbreak. This crisis has led to the strict enforcement of new rules in line with staying at home and practicing social distancing, causing temporary shutdowns of various businesses across the world.
In an official memo, Chapek disclosed that the global pandemic has affected their business “particularly hard,” saying they have since experienced problems brought about by the suspended operations of their domestic parks and hotels, cruise lines, film and TV production, and retail stores as well as significant delays in domestic and international theatrical distribution. “While I am confident we will get through this challenging period together and emerge even stronger, we must take necessary steps to manage the short and long term financial impact on our company,” he said.
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BREAKING: Walt Disney Company Senior Executives Take Salary Cuts Due to Unprecedented Disney Parks COVID-19 Closures. 💰 Disney has just announced that Senior Executives for the Walt Disney Company will be taking salary cuts to help in the midst of the unprecedented effects of COVID-19 on the company and the indefinite closure of Disney Parks across the globe. 💰 📸: @collidervideo 💰 💰 💰 #waltdisneycompany #waltdisneystudios #bobiger #bobchapek #disneycompany #thewaltdisneycompany #waltdisney #disneystyle #disneyside #disneylife #disneygeek #disneyaddict #instadisney #disneygram #disneygrammers #disneygrammer #disneybound #ilovedisney #disneybounding #disneyblogger #disneyblog #disneyphoto #disneyphotography #disneylifestyle #disneygramers #waltdisneyworld #disneyupdate #disneytime #disneyland #disneylandcaliforniaadventure
Such measures include pay cuts taken by top execs, according to Chapek, who is expected to halve his salary effective April 5. Meanwhile, vice presidents will have their income cut by 20%, senior vice presidents by 25%, and external vice presidents and above by 30% on the same starting date. “This temporary action will remain in effect until we foresee a substantive recovery in our business,” the CEO added.
As stated in an article by Daily Mail, those who are expected to take salary cuts include Senior Executive Vice President Alan Baverman; Senior Executive Vice President and Chief Financial Officer Christine M. McCarthy; Executive Vice Presidents Zenia Mucha and Jayne Parker; Executive Vice President of Controllership, Financial Planning and Tax Brent Woodford, Senior Vice Presidents Jonathan S. Headley, Lowell Singer, and Ronald L. Iden, and Vice Presidents Jon Storebeck and Jason Kirk. Variety said hourly park employees will be paid by the company through at least April 18.
As of this writing, the total number of confirmed coronavirus cases has reached 859,829—42,341 deaths and 178,335 recoveries worldwide. Many Hollywood personalities have stepped up to lend a helping hand to those affected by the crisis such as Blake Lively and Ryan Reynolds who have pledged $1 million to be halved by two charities; Ciara and Russell Wilson who have donated one million meals to Seattle’s Food Lifeline; Rihanna who has distributed $5 million grants to frontliners through her foundation Clara Lionel; Justin Timberlake who has provided financial aid to Mid-South Food Bank; Kristen Bell who has donated $150,007.96 to a U.S. charity along with her children, among others.
Lead photos via @RobertIger and @disneylandnewstoday