Outgoing Disney CEO Bob Iger and new CEO Bob Chapek are taking major pay cuts over the impact of the coronavirus pandemic.
Iger will forgo his salary, while Chapek takes a 50% cut.
The news was announced in an internal e-mail sent to cast members.
Other Disney executives will take pay cuts as well, Chapek said in the email. Employees at the vice president level will have their salaries reduced by 20%, senior vice presidents by 25% and executive vice presidents and above by 30%, according to the email.
Iger has long been among the top paid executives in the entertainment and media industry. In 2019, the former Disney CEO earned $47.5 million, down from $65.6 million in fiscal 2018.
According to CNBC, Chapek’s base salary is $2.5 million, according to his employment agreement for his new role as Iger’s successor as CEO. He is also eligible for incentive-based compensation including a $7.5 million annual target-based bonus and an annual equity-based long-term incentive grant of $15 million. It’s not immediately clear which part of his compensation will take the 50% reduction.
The parks, box office and stocks have all been greatly impacted by this pandemic. There is no indication when Disneyland or Walt Disney World will reopen and the theatrical release of “Mulan” and “Black Widow” have been delayed during the crisis.