DISNEY TOP EXECUTIVES TO CUT THEIR PAYS AMID CORONAVIRUS PANDEMIC

On Monday, The Walt Disney Co. said that Executive Chairman Bob Iger will go without his entire salary, recently named CEO Bob Chapek will receive a 50 percent pay cut to his base salary, and other executives will also take cuts amid the coronavirus pandemic, according to an email from Chapek sent to employees. "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 renewed confidence that will we come through this crisis even stronger than before, we have so many times in our company's history." 

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. The 50 percent pay cut applies to his base salary, his entire compensation. Additionally, all VPS will have their salaries reduced by 20 percent, SVPs by 25 percent and EVPs and above by 30 percent, effective 5 April. "Mr. Chapek will forego receipt of 50% and each of Mr. Braverman, Ms. McCarthy, Ms. Parker, and Ms. Mucha will forego receipt of 30% of the base salary that would otherwise be payable under his or her employment agreement for as long as the Company determines to continue in effect salary reductions generally for its executives," the filing stated. "The salary waivers will not modify other rights under the applicable employment agreements determined by reference to the officer’s base salary; such provisions will continue to be applied based on the stated base salary payable under the applicable agreement.”

Iger has been among the top-paid executives in the entertainment and media sector. As Chairman and CEO, he earned $47.5 million in the last fiscal year, down from $65.6 million in fiscal 2018. According to the filing, Iger agreed to forgo his paycheck through the last payroll period in the Company’s current fiscal year, receipt of all but that portion of his base salary necessary to fund, on an after-tax basis. His contributions will continue to participate in the company’s health benefits plan. He is also waiving his right to receive his car allowance payable during the same period the salary waiver is in effect.

Additionally, the filing specified that "the reductions are not intended to reduce any company-employee benefit provided to such officers that is determined by reference to the base salary payable, except as may be required at law, except for the amount of compensation for paid time off." On 19 March, Disney warned investors that its financials would take a hit due to the pandemic. "There has been a disruption in creation and availability of content we rely on for our various distribution paths, including most significantly the cancellation of certain sports events and the shutting down of production of most film and television content," it wrote in a regulatory filing with the SEC.

On Friday, it was announced that Disneyland and Walt Disney World would be closed until further notice due to the coronavirus outbreak. Park shopping districts and hotels are also closed, along with all North American and Paris Disney stores. With halted productions, cancelled sporting events, and closed business, research firm Moffett Nathanson has estimated that between all of these, Disney will take a revenue hit of US$3.4 billion in 2020. Disney added that it "has been paying its cast members since the closure of the parks, and have decided to extend hourly pay for park and resorts cast members through April 18." "While there is still much uncertainty with respect to the impacts of COVID-19, the safety and well-being of our guests and employees remain The Walt Disney Company’s top priority," the company wrote in a statement.