With the tough decision to close Disney World and Disneyland until further notice and postpone all Disney Cruise Line sailings until after April 28th, The Walt Disney Company’s ability to generate revenue is taking a big hit right now.
And while Disney has promised its Cast Members paychecks until April 18th, the Walt Disney Company’s CEO Bob Chapek and former CEO Bob Iger have announced they’ll be taking a large reduction in salary.
In a statement given to The Hollywood Reporter, Disney executive chairman Bob Iger is forgoing his entire salary while current Disney CEO Bob Chapek will be taking a 50% salary reduction.
Other Disney executives would be receiving a reduction to their salaries as a direct result of these difficult times. Chapek stated, “effective April 5, all VPs will have their salaries reduced by 20 percent, SVPs by 25 percent, and EVPs and above by 30 percent.” In recent days, we’ve seen other chief executives at other large companies start implementing these pay cuts such as Marriott’s CEO last week.
It has been estimated that Iger is among the entertainment and media industry’s best-paid executives with annual earnings ranging from $47.5 and $65.6 million during his time as Disney’s chairman and CEO.
Chapek earns a base CEO salary of $2.5 million, with an annual target bonus of $7.5 million, and an annual long-term incentive grant of $15 million. At this time it isn’t clear whether the 50% reduction will apply to compensation package or just his base salary.
We’ll continue to keep you updated on Disney’s financial situation as more information becomes available.