Disney executive chairman Bob Iger is to forgo his salary, while other top executives will take pay cuts during the coronavirus crisis.
Bob Chapek, who recently took over as CEO from Iger, will take a 50 percent pay cut, according to an email from Chapek to employees. According to the email, Disney will be reducing the salaries of the company’s vice presidents by 20 percent, senior vice presidents by 25 percent and executive vice presidents and above by 30 percent from April 5.
The news was met with praise from some on Twitter, including actress Nancy Lee Grahn, who wrote: “This is how an effective leader behaves. Much respect to my bosses #BobIger, #BobChapek & all the other execs taking pay cuts to help their employees during this crisis.”
Another actress, Sharon Lawrence, called it a “wise move” and added that Iger and his wife have donated $500,000 to coronavirus relief efforts.
But others noted that Iger’s temporarily giving up his salary wouldn’t affect him much in the long run.
“Bob Iger makes more than $65m a year, so even if he gives up a couple months of salary he’ll still earn more this year than most people will in their lives,” Russ Fischer noted.
“Disney CEO Bob Iger is forgoing his entire salary which is proof that when rich people are given the chance, they will show us just how much they don’t actually need any more money,” writer and comedian Sarah Cooper tweeted.
“I’m not trying to dunk on Iger, I’m just saying he’s giving up his salary and no one is asking him how he’s going to make rent.”
Writer and editor Lisa Fung added: “He can afford it.”
Bob Iger makes more than $65m a year, so even if he gives up a couple months of salary he’ll still earn more this year than most people will in their lives. https://t.co/wVLEv8z8PA
— Russ Fischer (@russfischer) March 30, 2020
Disney CEO Bob Iger is forgoing his entire salary which is proof that when rich people are given the chance, they will show us just how much they don’t actually need any more money
— Sarah Cooper (@sarahcpr) March 30, 2020
The “temporary” changes will remain in effect until the company foresees a “substantive recovery in our business,” Chapek said in the email.
Igor earned $47.5 million as chairman and CEO of Disney in the latest fiscal year, making him one of the highest-paid executives in the entertainment industry.
Chapek is paid a $2.5 million base salary and has an annual target bonus of $7.5 million and an annual long-term incentive grant of $15 million. His pay cut applies only to his base salary, according to The Hollywood Reporter.
The news comes after Disney announced last week that its parks in Anaheim, California and Orlando, Florida will remain closed until further notice. They had initially been set to reopen on April 1, but will now stay shut infinitely to stem the spread of the coronavirus.
“While there is still much uncertainty with respect to the impacts of COVID-19, the safety and well-being of our guests and employees remains The Walt Disney Company’s top priority,” Disney said in a statement.
“As a result of this unprecedented pandemic and in line with direction provided by health experts and government officials, Disneyland Resort and Walt Disney World Resort will remain closed until further notice.”
The company said it will continue to pay its hourly workers at both parks through April 18.
This infographic, provided by Statista, shows the number of confirmed COVID-19 cases in the U.S. as of March 31.
This infographic shows the number of confirmed COVID-19 cases by state.World Health Organization advice for avoiding spread of coronavirus disease (COVID-19)
Hygiene advice
- Clean hands frequently with soap and water, or alcohol-based hand rub.
- Wash hands after coughing or sneezing; when caring for the sick; before, during and after food preparation; before eating; after using the toilet; when hands are visibly dirty; and after handling animals or waste.
- Maintain at least 1 meter (3 feet) distance from anyone who is coughing or sneezing.
- Avoid touching your hands, nose and mouth. Do not spit in public.
- Cover your mouth and nose with a tissue or bent elbow when coughing or sneezing. Discard the tissue immediately and clean your hands.
Medical advice
- Avoid close contact with others if you have any symptoms.
- Stay at home if you feel unwell, even with mild symptoms such as headache and runny nose, to avoid potential spread of the disease to medical facilities and other people.
- If you develop serious symptoms (fever, cough, difficulty breathing) seek medical care early and contact local health authorities in advance.
- Note any recent contact with others and travel details to provide to authorities who can trace and prevent spread of the disease.
- Stay up to date on COVID-19 developments issued by health authorities and follow their guidance.
Mask and glove usage
- Healthy individuals only need to wear a mask if taking care of a sick person.
- Wear a mask if you are coughing or sneezing.
- Masks are effective when used in combination with frequent hand cleaning.
- Do not touch the mask while wearing it. Clean hands if you touch the mask.
- Learn how to properly put on, remove and dispose of masks. Clean hands after disposing of the mask.
- Do not reuse single-use masks.
- Regularly washing bare hands is more effective against catching COVID-19 than wearing rubber gloves.
- The COVID-19 virus can still be picked up on rubber gloves and transmitted by touching your face.
