With The Walt Disney Company continuing to face uncertain and unprecedented times due to the COVID-19 pandemic, today the company announced that its senior executives would be seeing a temporary cut in their compensation.
What’s happening:
- In an email sent to Cast Members, Walt Disney Company CEO Bob Chapek said that senior executives with the company would be asked to take a temporary pay cut.
- Chapek wrote, “[W]e are going to be implementing a variety of necessary measures designed to better position us to weather these extraordinary challenges. Among them, we will be asking our senior executives to help shoulder the burden by taking a reduction in pay.
- Effective April 5th, the following adjustments will happen:
- Vice Presidents will have their salaries reduced by 20%
- Senior Vice Presidents will have their salaries reduced by 25%
- Executive Vice Presidents and above will have their salaries reduced by 30%
- Additionally, Chapek will be taking a 50% reduction in salary while former CEO and now Executive Chairman Bob Iger will forgo 100% of his salary.
- Chapek notes, “This temporary action will remain in effect until we foresee substantive recovery in our business.”
Why this is happening:
- These moves come as the company is facing headwinds on multiple fronts.
- Not only are the Disney Parks closed until further notice but, with movie theatres closed, Disney has been forced to postpone several of their upcoming releases. Disney Stores and other retailers that might sell Disney merchandise have also largely been forced to close.
- Currently, Walt Disney World and the Disneyland Resort have said that hourly Cast Members will continue to be paid through April 18th.
- For more updates on how the COVID-19 pandemic is impacting The Walt Disney Company, visit our page.
What they’re saying:
- Disney CEO Bob Chapek in an email to Cast Members: “As we navigate through 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 we will come through this crisis even stronger than before, as we have so many times in our company’s history.”