Disney announced today that all Senior Executives for the Walt Disney Company will be taking salary cuts in order to manage the financial impact of Walt Disney World and Disneyland’s temporary closures.
In an emailed statement today, Bob Chapek, CEO of the Walt Disney Company, addressed the steps the company is taking in order to manage the financial impact the company is currently facing.
The email states all senior executives will have their pay temporarily reduced during the closure period. The salary cuts will go into effect on April 5th.
Chapek will have a salary reduction of 50%. Other Senior Executives will take pay cuts that range between 20 and 30%.
Bob Iger, former CEO of The Walt Disney Company, has chosen to forgo 100% of his salary.
Chapek’s statement reads as follows:
As we’ve seen, the coronavirus poses significant health risks and has exacted a grave toll on so many lives. As such, it’s more important than ever that all of us follow the guidance of health experts and take the necessary precautions, including continuing to work from home, wherever possible, and practicing social distancing. By doing so, we also help to protect our loved ones, neighbors, and friends. […]
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.
In light of this, we 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 5, all VPs will have their salaries reduced by 20%, SVPs by 25%, and EVPs and above by 30%. I will be taking a 50% reduction in my salary. This temporary action will remain in effect until we foresee a substantive recovery in our business. This temporary action will remain in effect until we foresee a substantive recovery in our business. Our executive chairman, Bob Iger, has chosen to forgo 100% of his salary.