The Walt Disney Company announced in an email sent on Monday that Chairman, Bob Iger will forgo his entire salary amid the Coronavirus pandemic. Recently named CEO Bob Chapek will take a 50 percent pay cut. Other senior executives will also take pay cuts.
The news comes days after it was announced that the U.S. Disney parks will remain closed indefinitely as shelter at home orders are still in place across the country. Disney has committed to continue paying hourly cast members until April 18th. This is the longest Disney parks in the U.S. have been closed.
In an email sent to employees, Chapek says, “The pandemic is also having a devastating impact on the global and U.S. economies, and it’s hitting businesses like ours particularly hard. In a matter of weeks, we’ve experienced widespread disruption across our company, with our domestic parks and hotels closed indefinitely, our cruise line suspended, our film and TV production halted and theatrical distribution delayed both domestically and internationally, and our retail stores shut down. While I am confident we will get through this challenging period together and emerge even stronger, we must take the necessary steps to manage the short- and long-term financial impact on our company.”
Per the email obtained by Variety, the cuts will be in effect by April 5th. Chapek explains who is taking cuts explaining that”all VPs will have their salaries reduced by 20%, SVPs by 25%, and EVPs and above by 30%.” Disney is joining the many other companies trying to do their part during the current pandemic.