As the coronavirus pandemic hits businesses around the world, Disney Executive Chairman Bob Iger will give up his salary and new CEO Bob Chapek will take a 50% cut. Up until recently, Iger was expected to remain on in his former position of CEO until 2021. However, Disney surprised fans last month with the announcement that Parks Chairman Chapek would step in, effective immediately. As it turns out, it was the start of a tumultuous time for the company.
Last week, the Walt Disney Co. announced Disneyland and Walt Disney World would close indefinitely due to the coronavirus. The shutdown was initially planned to last through March. Their movie production and distribution have been affected as well. The upcoming Marvel Cinematic Universe film Black Widow has been indefinitely postponed, with some, including star David Harbour, questioning if it should be released on Disney+.
Iger is one of the highest paid media executives in the world. Meanwhile, Chapek earns $2.5 million in salary, but also has a yearly bonus and other incentives. "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," Chapek wrote in an email sent to employees obtained by THR. He went on to say, "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." Besides the cuts to Iger and Chapek's salaries, Disney's vice presidents will have salaries cut by 20 percent. Meanwhie, senior vice presidents see a 25 percent reduction, and executive vice presidents' salaries will be slashed 30 percent beginning April 5.
In other coronavirus-related delays, Disney pulled Mulan from its scheduled releases, a film that was expected to do especially well overseas. While some Disney+ programs, like upcoming series The Falcon and the Winter Soldier, are experiencing production delays, the streaming service has not been hit by the coronavirus outbreak. So far, no release delays for the streamer have been announced Disney+, which launched in November, saw subscriptions triple in a week as people went into enforced isolation. Disney+ also joined other streaming platforms who agreed to temporarily reduce data consumption in Europe during the medical crisis.
Of course, this news doesn't mean Iger will be working for free. At the end of the year, Iger will still likely collect a huge bonus. During his fifteen years with Disney, Iger has also shored up a large amount of shares in the company. That being said, it's a gesture some other CEOs and executives haven't yet made to their employees. It also shows just how seriously Disney is taking the loss of revenue due to the coronavirus. Hopefully, once the pandemic is over, the company will be able to bounce back with the rest of the entertainment industry.
Source: THR