- Top Disney executives, including Bob Iger and CEO Bob Chapek, are taking pay cuts as the coronavirus pandemic continues to ravage the media giant’s stock and impede its operations globally.
- Iger will forgo his full salary, the company announced on Monday in a memo to employees.
- Iger’s base salary was $3 million last fiscal year, and he made $47.5 million in total compensation.
- Chapek, who became CEO in February, will take a 50% salary cut.
- The cost-saving measures will start on April 5 and remain “until we foresee a substantive recovery in our business,” Chapek said.
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Disney’s top executives, including executive chairman Bob Iger and chief executive Bob Chapek, are taking pay cuts as the coronavirus pandemic continues to ravage the media giant’s stock and impede its operations globally.
The pay cuts will start on April 5 and remain in place “until we foresee a substantive recovery in our business,” Chapek wrote in the memo to Disney employees that was reported by multiple outlets on Monday.
Iger, who has been criticized by Disney heiress Abigail Disney in the past for his “insane” pay, is forgoing his full salary. His base salary was $3 million last fiscal year, and he made $47.5 million in total compensation including stock options and awards and bonuses.
Chapek, who became CEO in February, will reduce his salary by half.
Other execs will take pay cuts too:
- Vice president salaries will be reduced by 20%
- Senior vice president salaries by 25%
- Executive vice president salaries by 30%
The cost-savings measure comes after Disney lost nearly one-third of its market value in the past month, as the coronavirus pandemic dragged on the stock market as a whole.
Disney is one of media companies hit hardest by the pandemic, which impeded its operations around the world. The company was forced to shutter its theme-park operations globally, including closing its profitable US parks and hotels indefinitely. Its film releases have been delayed, and TV and movie productions have been halted. The loss of live sports has also hamstrung its cable network ESPN.
“The pandemic is also having a devastating impact on the global and US economies, and it’s hitting businesses like ours particularly hard,” Chapek wrote in the memo, published by Deadline. “In a matter of weeks, we’ve experienced widespread disruption across our company.”
Disney has said it will continue paying the cast members who work at its domestic parks through April 18.
For more about how the coronavirus pandemic is impacting media, see our coverage on BI Prime:
- The key factors analysts are watching at 5 major media companies including Disney and Fox to help determine whether their stock will keep falling or rebound: Combined, Disney, Fox, ViacomCBS, Discovery, and AMC Networks lost $92 billion in market value since the last market high on Feb. 19, largely thanks to Disney.
- Disney has closed its US parks ‘until further notice’ and risks losing $1.5 billion in revenue per month they are shut, analysts say: Disney is extending “until further notice” its closures of its US theme parks, Disney World and Disneyland, due to the coronavirus pandemic, the company announced on March 27.
- Analysts lay out the financial damage each of Disney’s businesses could face, as it closes parks ‘until further notice’ and delays films: Disney is one of the media companies most exposed the impact of the coronavirus because of its large theme park and theatrical businesses.
- Why analysts say Disney and Discovery are the media giants most threatened by the coronavirus, but Comcast could fare better: Companies that generate significant shares of their revenue from theme parks, films, and advertising are most sensitive to the pandemic, and a potential economic downturn it could ignite.
- Why Netflix’s business could take a hit from the coronavirus, despite reports that ‘stay at home’ stocks could benefit: Much of Netflix’s revenue growth is international, including markets like Europe and Asia, which are especially vulnerable to the virus.
- Disney’s surprise CEO change makes sense because of the coronavirus’ growing impact on its business, according to a Wall Street analyst: The day-to-day pressures of the Disney CEO may mount if the coronavirus continues to spread outside of China, drawing former chief Bob Iger’s focus at a crucial creative moment.