Walt Disney (DIS 1.42%) is taking steps to conserve cash during the coronavirus crisis. The company is starting at the top by reducing the base salaries of Disney's named executives.
The details
Here are the executive pay reductions, as published in an SEC filing on Monday evening:
|
Name |
Title |
2019 Base Pay |
Base Pay Decrease |
|---|---|---|---|
|
Bob Iger |
Executive Chairman |
$3 million |
100% |
|
Bob Chapek |
CEO |
$2.5 million |
50% |
|
Alan Braverman |
Senior EVP, General Counsel |
$1.75 million |
30% |
|
Christine McCarthy |
Senior EVP, CFO |
$1.8 million |
30% |
|
Jayne Parker |
Senior EVP, Chief Human Resources Officer |
$1.05 million |
30% |
|
Zenia Mucha |
Senior EVP, Chief Communications Officer |
$1.16 million |
30% |
These pay cuts are temporary, lasting until the company can restart its paused operations such as theme parks and movie production. Iger has agreed to forgo his base salary at least until the end of Disney's fiscal year, which runs until the end of September.
The officers are still eligible for stock-based and cash bonuses, which typically constitute the majority of their total pay. For example, Bob Iger Pocketed $21.8 million of cash bonuses in 2019 alongside equity awards worth $19.7 million. The reductions will take effect in the payroll period starting on April 5.
Image source: Walt Disney.
Disney has not furloughed or fired any of its full-time staff at this point, even though that move could save the company up to $500 million. Disney did pause its business relationships with third-party park workers such as the performers at Disney World's Cirque du Soleil and the staff at park-based Rainforest Cafe locations.
