As first reported by The Hollywood Reporter, The Walt Disney Co. said on Monday that Bob Iger will forgo his entire salary and recently named CEO Bob Chapek will take a 50 percent pay cut to his base salary amid the coronavirus pandemic.
The move comes as Disney announces that their parks and resorts will remain closed until further notice. Along with Iger forgoing his salary and Chapek’s pay cut, other executives in the Walt Disney Co. will also take salary cuts.
In an email, Chapek sent out, “effective April 5, all VPs will have their salaries reduced by 20 percent, SVPs by 25 percent and EVPs and above by 30 percent. 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.”
He continued to say, “Mr. Iger has agreed to forgo, 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 to continue to participate in the Company’s health benefits plan,” states the filing. “He is also waiving his right to receive his car allowance payable during the same period the salary waiver is in effect.”
The move shows Disney’s efforts to counter the lack of income that will be coming into the mouse company.
