Walt Disney Co. Executive Chairman Bob Iger will forgo his entire multi-million dollar salary and other top executives will take pay cuts amid the coronavirus pandemic.
Disney CEO Bob Chapek revealed the announcement in a memo emailed to staff members on Monday.
Iger, 69, will waive his entire salary after raking in a staggering $47.5million in the last fiscal year. In the 2018 fiscal year, Iger made $65.8million.
His base salary is $3million, but a cash bonus and stock awards helped raise his financial takeaways.
Iger, who was CEO for 15 years before taking on his current position in 2020, is worth an estimated $690 million.
Walt Disney Co. Executive Chairman Bob Iger (pictured) will waive his million dollar salary after making $47.5million last year amid the coronavirus pandemic
Chapek will take a 50 percent pay cut per his memo. His base salary is $2.5million, with an annual target bonus of $7.5million and an annual long-term incentive grant of $15million.
It’s unclear if the 50 percent reduction will apply to his base salary or to his entire compensation.
Additionally, Chapek said that vice presidents, senior vice presidents and executive vice presidents will also take pay cuts.
‘Effective April 5, all VPs will have their salaries reduced by 20%, SVPs by 25%, and EVPs and above by 30%,’ he wrote, Variety reports.
‘This temporary action will remain in effect until we foresee a substantive recovery in our business,’ he added.
Bob Chapek (pictured), Disney’s Chief Executive Officer, will take a 50 percent pay cut, but it’s unclear if it will apply base salary or to his entire compensation
Chapek said the pay cuts were a result of the coronavirus pandemic – which has infected 152,492 and killed 2,787 in the United States – and a necessary step for long-term financial management.
He cited the recent closure of Disney theme parks and hotels, halted productions and stalled operations.
Chapek said: ‘The pandemic is also having a devastating impact on the global and U.S. economies, and it’s hitting businesses like ours particularly hard.
‘In a matter of weeks, we’ve experienced widespread disruption across our company, with our domestic parks and hotels closed indefinitely, our cruise line suspended, our film and TV production halted and theatrical distribution delayed both domestically and internationally, and our retail stores shut down.
‘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.’
Chapek’s memo revealed that top executives at all levels are expected to take pay cuts, including Senior Executive Vice President Alan Baverman (left), Senior Executive Vice President and Chief Financial Officer Christine M. McCarthy (right)
Executive Vice Presidents, like Zenia Mucha (left) and Jayne Parker (right), will waive 30 percent of their salary
Brent Woodford (pictured), an executive vice president of controllership, financial planning and tax, will lose 30 percent of his salary
Executive Vice Presidents expecting to see pay cuts include Alan Braverman, Christine M. McCarthy, Zenia Mucha, Jayne Parker and Brent Woodford.
Walt Disney Co. has several vice presidents that range multiple departments, but some staffers who may see a hit include Jon Storbeck, Vice President of Disneyland Park in Anaheim, California, and Jason Kirk, Vice President of Magic Kingdom.
The memo comes after the multi-media company took an unexpected financial hit when COVID-19 began circling the globe.
Strict social distancing orders and shutdowns have caused closures at several Disney locations in the US and other countries.
Several Disney attractions like theme parks, cruises and hotels have been closed due to the coronavirus pandemic
Chapek (pictured): ‘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’
It warned its investors of potential economic downfalls in a regulatory filing with the Securities and Exchange Commission, per The Hollywood Reporter.
‘There has been a disruption in creation and availability of content we rely on for our various distribution paths, including most significantly the cancellation of certain sports events and the shutting down of production of most film and television content,’ the company wrote.
Disney said that it will continue to pay its hourly park workers through at least April 18.
Disney’s Vice Presidents, which include Jon Storebeck (left) and Jason Kirk (right) will take a 20 percent salary pay cut
Just one day prior, union leaders for California and Florida’s Disney parks sent a letter to the company demanding an update on the current status.
‘After going all day, and evening, yesterday without having any meaningful conversation about the resort closure and the impact it is having on the cast, more action was felt necessary,’ wrote members of Workers United Local 50.
Similary, Universal Studios previously extended it parks reopen deadline to April 18 and will pay employees up to that date.
SeaWorld Entertainment said Friday that it furloughed more than 90 percent of employees as of April due to park closures.
One positive in Disney’s back pocket is the streaming service Disney+, which apart from some program postponements – like Marvel’s The Falcon and the Winter Soldier – it is relatively unaffected.