This morning The Walt Disney Co. made the announcement that its executive chairman, Bob Iger, will forgo his entire salary. The new CEO, Bob Chapek, will take a 50% salary cut.
The news comes days after the company decided to keep its theme parks closed, and all cruise ships docked. To be honest, I was wondering if an announcement like this would come. Several other companies have done the same thing, being in this same position.
In the latest fiscal year, Iger earned $47.5 million as chairman and CEO, down from $65.6 million in fiscal 2018. I applaud Bob Iger for forgoing his entire salary. Just another reason he’ll always be someone I admire.
Bob Chapek’s base salary as CEO is $2.5 million, with an annual target bonus of $7.5 million, and an annual long-term incentive grant of $15 million. It’s still not clear whether the 50 percent pay cut will apply to his base salary, or to his entire compensation package.
There was also a company-wide email sent by Chapek on Monday morning, stating the following; “Effective April 5, all VPs will have their salaries reduced by 20 percent, SVPs by 25 percent and EVPs and above by 30 percent.”
The email continued to say; “As we navigate through these 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 a renewed confidence that will we come through this crisis even stronger than before, we have so many times in our company’s history.”
The Walt Disney Company will also be paying its hourly parks and resorts Cast Members through April 18, 2020.
Want to go on vacation?
We recommend Academy Travel, a Disney Diamond Earmarked agency. Walt Disney World, Disneyland, Disney Cruise Line, Adventures by Disney, Universal Orlando Resort, Sea World and more -- they can do it all, and at no extra cost to you! Fill out the form below or call 609-978-0740 today!