The Walt Disney Co. late Monday became the first media company to announce voluntary pay reductions among its top executives in the wake of the coronavirus global pandemic.
And they are massive.
Executive chairman Bob Iger, who only recently stepped down from his role as CEO last month, will forgo his entire annual salary while new CEO Bob Chapek will take a 50 percent pay cut to his base salary, according to an email he sent to employees that was obtained by The Hollywood Reporter.
According to THR, Iger earned $47.5 million in the last fiscal year while Chapek's base salary as CEO is $2.5 million, with an annual target bonus of $7.5 million and an annual long-term incentive grant of $15 million. The 50 percent pay cut applies to his base salary, not to his entire compensation package.
In addition, Chapek announced in the email that effective April 5, all Disney vice-presidents will have their salaries reduced by 20 percent, all senior vice-presidents by 25 percent and all executive vice-presidents and above by 30 percent.
"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," Chapek said. "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, (as) we have so many times in our company's history."
Iger is also waiving his right to receive a car allowance payable during the same time period he is forgoing his salary.
The news comes just days after Disney announced that Walt Disney World and Disneyland, which temporarily shuttered on March 15, would remain closed until further notice. Disney also said it would continue to pay its cast members through April 18, at which time it will re-evaluate the situation.
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