According to The Hollywood Reporter, some Disney executives are pushing back on the recently announced pay cuts. In case you missed it, Disney CEO Bob Chapek announced that he would be taking a 50% pay cut, Bob Iger would be forgoing his entire salary, and other executives would take the following pay cuts:
- Executive Vice Presidents – 30% pay cut
- Senior Vice Presidents – 25% pay cut
- Vice Presidents – 20% pay cut
Now, it seems that some affected executives at the VP, Senior VP, and Executive VP level aren’t happy with the terms of their pay cut. More specifically, they aren’t happy with the fact that the new contract that they were sent doesn’t have an end date and the execs were only given two days to sign.
A Disney VP typically earns between $150,000 and $200,000 in base pay, while an Executive VP can top $700,000, according to the report. Here’s more from the report:
Those familiar with the new reductions — 20 percent for vps, 25 percent for senior vps and 30 percent for executive vps — note that the bulk of Iger and Chapek’s compensation will remain untouched because the cuts only apply to their base salaries. In the case of Chapek, his base is $2.5 million, but his annual target bonus is $7.5 million and his annual long-term incentive grant is $15 million.
Likewise, Iger’s base salary in the most recent fiscal year was $3 million, but he earned $44.5 million in additional compensation, which would remain intact (Iger’s additional compensation is largely based on the company’s performance and likely will not match that figure this year). In a filing with the Securities and Exchange Commission, Disney also noted that “Mr. Iger…is also waiving his right to receive his car allowance payable during the same period the salary waiver is in effect.” That gesture didn’t go unnoticed by some, whose total annual compensation is in line with the cost of a luxury vehicle.
A Disney source dismissed the grumblings, telling THR, “Much of the company has ground to a halt because of this pandemic, and for these people to complain in the face of so much suffering in the world is just incredibly selfish and sad.”
Sources say the amended Disney contracts use the word “temporary” to describe the cuts, which are effective immediately, but offer no firm end date. Some believe that the virus crisis, at least as defined by its impact on Hollywood, could easily last 18 months. That’s the amount of time experts believe will be needed before a vaccine is available to the masses.
Sources say the amended contracts “are pretty much voluntary.” However, the expectation is for executives to sign. If an executive doesn’t sign, he or she is taking a risk with regard to future career mobility within the studio and the prospect of potential bonuses.
Representatives who have pushed back on behalf of their executive clients have been met with a Disney business affairs department unwilling to negotiate.
Of course, this pushback appears to be quite tone deaf given that many Disney employees will be furloughed come April 19th, and unions were negotiating today with Disney to determine the fate of the rest of the at-risk Cast Members.
As always, keep checking back with us here at BlogMickey.com for the latest Disney Parks news and photos. We’ll continue to bring you news and photos, where possible, through the Disney Parks closure due to Coronavirus (COVID-19) and will resume our normal coverage once the parks reopen to guests on July 11th!
Of course they want relief funds. When I lost my job a few years back due to spine disease, I asked for a hold on my pass until I got better….. was told we can pause but only for small period and not specific to my recovery schedule.
I took it like a man though, over and above the constant price increases.
So I went to Universal and yes, bought an annual pass there and things were handled much better and differently. … as an FYI.
Go down on prices if you take a taxpayer bailout!!
would like to know what`s going on with one of my favorite places to take a vacation. Love Disney !!