With the tough decision to close Disney World and Disneyland until further notice and postpone all Disney Cruise Line sailings until after April 28th, The Walt Disney Company’s ability to generate revenue is taking a big hit right now.
Sleeping Beauty Castle in Disneyland
And while Disney has promised its Cast Members paychecks until April 18th, the Walt Disney Company’s CEO Bob Chapek and former CEO Bob Iger have announced they’ll be taking a large reduction in salary.
In a statement given to The Hollywood Reporter, Disney executive chairman Bob Iger is forgoing his entire salary while current Disney CEO Bob Chapek will be taking a 50% salary reduction.
Bob Iger
Other Disney executives would be receiving a reduction to their salaries as a direct result of these difficult times. Chapek stated, “effective April 5, all VPs will have their salaries reduced by 20 percent, SVPs by 25 percent, and EVPs and above by 30 percent.” In recent days, we’ve seen other chief executives at other large companies start implementing these pay cuts such as Marriott’s CEO last week.
Bob Chapek ©Disney
It has been estimated that Iger is among the entertainment and media industry’s best-paid executives with annual earnings ranging from $47.5 and $65.6 million during his time as Disney’s chairman and CEO.
Chapek earns a base CEO salary of $2.5 million, with an annual target bonus of $7.5 million, and an annual long-term incentive grant of $15 million. At this time it isn’t clear whether the 50% reduction will apply to compensation package or just his base salary.
We’ll continue to keep you updated on Disney’s financial situation as more information becomes available.
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Most likely only applies to the base salary, with the incentives and stock options in tact. ie. mostly a PR move.
It sounds good until you really think about it. Iger should take a years pay and split it among the cast members at Disney parks and cruise lines. They are the ones who need the money and they are the ones the parks can’t operate without. $65M annually for one person?!
Can’t say I can find any sympathy for anyone who has to live on fewer *millions* in these times.
So where is this money sacrifice going? To cast members? To stock buy backs? To the bottom line?
I’m not sad for them. They are all multi millionaires and billionaires. They want for nothing and never will. My question is once Disney does reopen will the guest have a huge hike in tickets, merchandise etc be blasted with to make up for the pay cut these people are taking. I am an avid Disney fan and AP holder and I pray this is not the end for Disney. Stay safe everyone and stay home until we are sure this is done.
Are you kidding me, why can’t they give there whole salary they make millions.
Oh! BooHoo for the money grabbers who are paid millions devising ways to empty as much cash out of your pockets as the possibily can! Disney needs a Change in Direction and Leadership! My family has realized that trying to capture the Magic of visits past cannot be realized in the current upcharge for everything, jam smashed OverCrowded low quality food and service dirty Parks it has Become.
WOW !!!!! Now I know why one banana at Port Orleans French Quarter goes for $2.49 each. At Walmart they give them to children for free. Mr. Disney must be rolling in his grave.
I want to express my thanks to Disney and its leadership for taking the lead in these difficult times. Disney is one of the few places I have been where the experience is worth the expense. They truly deliver in all areas! They have the cleanest parks, great food, pleasant atmosphere, and wonderful attractions. Their commitment to excellence is evident by anyone who understands the dynamics of large crowds and big productions. Every day and night they bring their best!!! Thank you for caring about your employees and paying them when very little revenue is coming in. Thank you for providing many years of family entertainment.
yes Disney needs to be reset . not so much at the top and pay workers that make Disney so wonderful 20.00 an hour or more depending on what they do. payed vacation and sick pay and health insurance and dental . I could straighten it out now is the time to finish the parks for the 50th Anniversary
One thing can’t be denied. The put the employees first. They paid them, and covered them with their health insurance. Even the employee contribution share. It may be a PR move, but it would be a helpful one compared to what a lot of companies did. It would be a win-win PR move.
How companies responded to the needs of their employees in a very unstable time, is going to affect my decision of who gets my money from here out.