Walt Disney Co. Chief Executive Bob Chapek and Executive Chairman Robert Iger will take pay cuts to help the financially struggling company during the coronavirus outbreak.
Chapek sent a memo on Monday morning to the employees of the Burbank entertainment and media giant outlining how senior executives will help shoulder the burden.
“Effective April 5, all (vice presidents) will have their salaries reduced by 20 percent, (senior vice presidents) by 25 percent and (executive vice presidents) and above by 30 percent,” Chapek said in the memo. “I will be taking a 50 percent 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 percent of his salary.”
Chapek became chief executive in late February and his salary was pegged at $2.5 million, with another $22.5 million in bonuses. Last year, Iger’s total compensation package was $48 million, primarily in stock and bonuses tied to the company’s strong performance.
Disney has been knocked around by the coronavirus pandemic, having closed its theme parks around the world, scaled back on film and television production, delayed new film releases and suspended its cruise line.
“While I am confident we will get through this challenging period together and emerge even stronger, we must take necessary steps to manage the short- and long-term financial impact on our company,” Chapek said in the memo.
Shares of Disney (DIS) closed up $3.40, or about 3.5 percent, to $99.80 on the New York Stock Exchange.