Disney Executives Sacrificing Salaries to Fund Coronavirus Aid for Employees

Disney’s top Executives are sacrificing their own salaries in effort to help fund payments to employees during the drastic economic downturn caused by the novel Coronavirus Pandemic. That includes Disney‘s outgoing CEO Bob Iger pledging to give up 100% of his own salary. In a letter issued to employees, Incoming CEO Bob Chapek further states that, “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. Our executive chairman, Bob Iger, has chosen to forgo 100% of his salary.”

You can get the full statement from Disney below:

“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. Our executive chairman, Bob Iger, has chosen to forgo 100% of his salary.”

Disney has been hit hard by the coronavirus COVID-19 and the global measures being taken to combat it. Analyst has estimated the company was losing upwards of $350K per day (as of last week), as movie theaters and theme parks are closed for unknown stretches of time, and retail all around the world has slowed as the global economy teeters on the brink. Still, it’s suspected that Disney has enough cash in its vaults to weather the storm, and the executive level forgoing their usual haul of big money will definitely help to offset the money the employees a the park, retail, and production divisions need while they are forced to stay at home. Disney is but one of several big companies making executive salary cuts to offset the losses of the Coronavirus Pandemic, and it is logical (if not admirable). After all, how can you pay yourself big salary and bonuses on managing a stalled business?