Disney reveals one of its executives earned a contract extension and an annual award worth $11 million per fiscal year. What do you think of this news?
You may remember Disney halted the salaries for many of its top executives during the pandemic. Disney CEO, Bob Chapek, shared at the end of March that all senior executives will have their pay temporarily reduced during the closure period. Chapek himself would take a 50% cut while other senior executives would take a 20-30% pay cut.
Bob Iger, former CEO of The Walt Disney Company, chose to forgo 100% of his company salary.
Those salaries have since been reinstated, but the timing could not have been worse for Disney. They laid off approximately 28,000 Cast Members right around the same time. Many saw this as a slap in the face to those hard-working Cast Members, and Senator Warren even shared a public letter asking Chapek for an explanation.
Chapek responded stating, “As the pandemic persisted, we had to make the difficult decision to furlough employees while continuing to pay the full cost of their health coverage,” Chapek continued. “More than six months after closing our domestic parks, with the outcome of the pandemic still very uncertain, we had no choice to lay off a number of non-working employees.” You can read the entire response HERE.
Chief Financial Officer Christine McCarthy
In a recent report, Disney revealed that Christine McCarthy, who is the Chief Financial Officer for The Walt Disney Company, received a contract extension and an annual award. Her new contract now runs through the end of December 2022.
Additionally, the company is giving her a long-term equity incentive – priced at $11 million. The filing states, “For each full fiscal year during the term hereof, Executive shall receive an annual award with a target award value (which value shall be as determined in accordance with the policies and practices generally of Company) of $11,000,000.
The Compensation Committee may adjust (i.e. reduce or increase) the target award value of any award made in respect of any fiscal year based on its evaluation of Executive’s performance and/or any economic, financial and/or market conditions affecting the Company and/or Disney.”
This simply means this incentive may be more or less than $11 million per fiscal year depending on McCarthy’s performance and other determining factors.
What do you think of McCarthy’s annual incentive? Let us know on the Facebook, or share your thoughts with us in the KtP Crew.
I can’t top what I really want to say but I think this is completely awful! I would be livid if I was an employee who was laid off or furloughed and lost my benefits! What kind of message is this sending to cast members and even to Disney guests?! Obviously they value their upper echelon more than those workers who bring the magic to their guests! Do they actually think they will inspire loyalty among their workers with this slap in the face?!
I don’t think those execs should have resumed their full salary yet. Their timing was the worst! Now you have someone receiving an $11M bonus?! I’m sorry but, in my opinion, no one needs or deserves that amount of money as a bonus when thousands have been let go!! Bad business, bad perception. I had a trip planned in January and have been sad about it. Now I’m actually glad. Why should I put more money into the pockets of the execs?!
Disney has always been lauded for their business plans and customer service. Maybe now they need to start taking care of their employees and quit lining their pockets!
Ian Lamble put it perfectly. Disgusting to lay off so many, who ate the real magic behind Disney, and give out mind boggling amounts of bonuses. I hope Disney and the recipients of these bonuses do the right thing!
Vile. When those that bring the magic get laid off you get this ? The integrity of Disney diminishes by the day. Do the right thing Christine and give back to those that need it. You may be successful, I don’t know and couldn’t comment. But any Manager is only as good as the team around them. Just hope you have a conscience.