Iger forgoes salary and Chapek takes pay cut as Disney wrestles with COVID-19 | attractionsmanagement.com news
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Iger forgoes salary and Chapek takes pay cut as Disney wrestles with COVID-19
POSTED 31 Mar 2020 . BY Tom Anstey
Chapek recently replaced Iger as CEO, while Iger took up the role of executive chair Credit: Disney
Disney's executive chair Bob Iger will forgo his salary for the year, with the company's new CEO Bob Chapek also taking a 50 per cent pay cut.

Starting 5 April, Disney has also cut wages by 20 per cent for all VP level executives, while senior VPs will recieve a 25 per cent pay cuts and all executive VPs and above will see a 30 per cent cut.

The sizeable pay cuts among Disney's senior executives account for millions of dollars, with Chapek's new pay packet worth US$2.5m (€2.3m, £2m), with a further US$22.5m (€20.5m, £18.2m) in bonuses. In 2019, Iger's annual compensation totalled US$48m (€43.6m, £38.9m).

All of Disneys theme parks and resorts in the US and Europe remain closed, with limited operations in mainland China, with the operator continuing to pay its hourly parks employees through at least April 18. Beyond that, the company has experienced widespread disruption, with its cruise line suspended, its film and TV production division halted and theatrical distribution delayed both domestically and internationally, as well as its retail stores closed down.

"Our world is facing an unprecedented crisis that has fundamentally upended our lives, creating uncertainty and hardship – while, at the same time, spurring kindness and compassion. And although there are still many unknowns with respect to the impacts of COVID-19, our top priority remains your safety and well-being," said Chapek in a letter to Disney employees.

"This is a trying period for all of us and as we navigate these challenging times together and make adjustments in our daily lives, we’re grateful for everyone’s continued flexibility and understanding.

"The pandemic is also having a devastating impact on the global and US economies, and it’s hitting businesses like ours particularly hard. In a matter of weeks, we’ve experienced widespread disruption across our company

"While I'm 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.

"In light of this, we're going to be implementing a variety of necessary measures designed to better position us to weather these extraordinary challenges. Among them, we will be asking our senior executives to help shoulder the burden by taking a reduction in pay. This temporary action will remain in effect until we foresee a substantive recovery in our business. Our executive chair, Bob Iger, has chosen to forgo 100 per cent of his salary.

"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 we will come through this crisis even stronger than before, as we have so many times in our company’s history."

Credit: Disney
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Jobs   News   Products   Magazine
NEWS
Iger forgoes salary and Chapek takes pay cut as Disney wrestles with COVID-19
POSTED 31 Mar 2020 . BY Tom Anstey
Chapek recently replaced Iger as CEO, while Iger took up the role of executive chair Credit: Disney
Disney's executive chair Bob Iger will forgo his salary for the year, with the company's new CEO Bob Chapek also taking a 50 per cent pay cut.

Starting 5 April, Disney has also cut wages by 20 per cent for all VP level executives, while senior VPs will recieve a 25 per cent pay cuts and all executive VPs and above will see a 30 per cent cut.

The sizeable pay cuts among Disney's senior executives account for millions of dollars, with Chapek's new pay packet worth US$2.5m (€2.3m, £2m), with a further US$22.5m (€20.5m, £18.2m) in bonuses. In 2019, Iger's annual compensation totalled US$48m (€43.6m, £38.9m).

All of Disneys theme parks and resorts in the US and Europe remain closed, with limited operations in mainland China, with the operator continuing to pay its hourly parks employees through at least April 18. Beyond that, the company has experienced widespread disruption, with its cruise line suspended, its film and TV production division halted and theatrical distribution delayed both domestically and internationally, as well as its retail stores closed down.

"Our world is facing an unprecedented crisis that has fundamentally upended our lives, creating uncertainty and hardship – while, at the same time, spurring kindness and compassion. And although there are still many unknowns with respect to the impacts of COVID-19, our top priority remains your safety and well-being," said Chapek in a letter to Disney employees.

"This is a trying period for all of us and as we navigate these challenging times together and make adjustments in our daily lives, we’re grateful for everyone’s continued flexibility and understanding.

"The pandemic is also having a devastating impact on the global and US economies, and it’s hitting businesses like ours particularly hard. In a matter of weeks, we’ve experienced widespread disruption across our company

"While I'm 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.

"In light of this, we're going to be implementing a variety of necessary measures designed to better position us to weather these extraordinary challenges. Among them, we will be asking our senior executives to help shoulder the burden by taking a reduction in pay. This temporary action will remain in effect until we foresee a substantive recovery in our business. Our executive chair, Bob Iger, has chosen to forgo 100 per cent of his salary.

"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 we will come through this crisis even stronger than before, as we have so many times in our company’s history."

Credit: Disney
RELATED STORIES
Japanese attractions start to reopen following two-month closure


Some attractions operators in Japan have started to reopen their doors to the public with the coronavirus largely contained in the country.
FEATURE: People profile: Brian Morrow


Creating new worlds and immersing people in them
Imagineering in a Box – Peek behind the Disney curtain with free online training scheme


Disney's Imagineering team is offering "one-of-a-kind" learning experiences with Imagineering in a Box – a free online programme offering lessons in theme park design and engineering.
Disney parks donate surplus food following temporary closure


MORE NEWS
BIG creates spiral museum for Swiss watchmaker Audemars Piguet
Swiss luxury watchmaker Audemars Piguet will open a museum celebrating the company history next month (June 2020).
Israel's tourism industry begins gradual relaunch – some hotels given green light to open
Hotels and accommodations in Israel with ground floor rooms have been given permission to reopen for business – but only for domestic tourism.
Disney places 100,000 workers on unpaid leave – plans to save US$500m a month
Walt Disney is set to stop paying more than 100,000 of its theme park and hotel workers as the entertainment giant struggles with coronavirus closures.
Future of Canada's oldest aquarium 'under threat' due to coronavirus shutdown
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COMPANY PROFILES
DJW

David & Lynn Willrich started the Company over thirty years ago, from the Audio Visual Department [more...]
Clip 'n Climb

Clip ‘n Climb currently offers facility owners and investors more than 40 colourful and unique Cha [more...]
TOR Systems Ltd

TOR Systems have been in this business since 1981. [more...]
Antonio Zamperla Spa

Founded in 1966, the Antonio Zamperla SPA is privately owned by Mr Alberto Zamperla. Located in Vi [more...]
+ More profiles  
VIDEO GALLERY

Red Raion: Meet the Team - Introduction
Red Raion is the CGI studio specialized in media based attraction. Find out more...
More videos:
Miko and the Spell of the Stone - Movie Trailer – Red Raion
Experience the experience – Polin Waterparks & Pool Systems
Red Raion Showreel 2019 – Red Raion
+ More videos  

CATALOGUE GALLERY
+ More catalogues  
DIRECTORY
+ More directory  
DIARY

 

28 Jun - 01 Jul 2020

Arabian Travel Market

Dubai World Trade Centre, Dubai, United Arab Emirates
08 Oct 2020

VAC 2020 (The Annual National Conference of Visitor Attractions)

Queen Elizabeth II Conference Centre, London, United Kingdom
+ More diary  
 


ADVERTISE . CONTACT US

Leisure Media, Portmill House, Portmill Lane,
Hitchin, Hertfordshire SG5 1DJ Tel: +44 (0)1462 431385

©Cybertrek 2020

ABOUT LEISURE MEDIA
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