Disney Execs Protest COVID-19 Pay Cuts
Beyond deaths and a rising number of confirmed cases, the raging coronavirus pandemic is also having far-reaching economic effects, such as extensive pay cuts that have left Disney executives fuming.
The Hollywood Reporter quotes sources who say that salary cuts announced last week have upset vice presidents, senior vice presidents, and executive vice presidents at the Walt Disney Co. The executives say that the cuts were decided without consultation and that no end dates to the salary cuts were specified in the new contracts they were made to sign.
According to an email sent out by Disney CEO Bob Chapek, the base salary of vice-presidents will get a 20 percent cut. The base salary of senior vice-presidents will get a 25 percent cut, while the base salary of executive vice-presidents and above will get a 30 percent cut.
While Walt Disney Co. chairman Bob Iger is giving up practically his entire base salary, Forbes points out that it only makes up a part of his compensation package, with most of his $47.5 million earnings coming from a stock option, stock awards, and a bonus. The stock option, stock awards, and the bonus will remain untouched.
Chapek also announced that he will be reducing his base salary by 50 percent. However, he also has a $7.5 million annual target bonus and a $15 million long-term incentive grant.
According to The Hollywood Reporter, executives were not appeased by the additional announcement that Iger will also be giving up his car allowance, pointing out that the cost of a luxury vehicle already equals that of their annual pay.
Disney management is dismissive of the growing unrest, with a source telling The Hollywood Reporter that the company thinks these complaints during a period of suffering for everyone is “selfish and sad.”
The entertainment industry is set to be hit hard by the coronavirus. Due to the closures of movie theaters brought about by COVID-19, the North American box office suffered a $600 million deficit. The global film industry is also set to lose $5 billion because of the closure of cinemas in huge markets like South Korea and Japan.
COVID-19 is not likely to slow down anytime soon. In the United States alone, 304,826 confirmed cases of COVID-19 have been recorded by the Centers for Disease Control and Prevention. COVID-19 deaths in the United States is at 7,616 people.
Worldwide, confirmed COVID-19 cases have now made it past a million -- 1,133,758 cases, to be exact. Worldwide deaths stemming from COVID-19 are now at 62,784.