Disney employees received an email this morning from Bob Chapek, new Chief Executive Officer of the Walt Disney Company, discussing the unprecedented crisis that has fundamentally upended all of our lives. As he so accurately observes, recent times have created uncertainty and hardship – but also spurred kindness and compassion among us.
Reiterating that Disney’s top priority is our safety and wellbeing, he also admits that this is a trying time for all of us. From an economic and business perspective, Disney has been hit by widespread disruption. Domestic parks and hotels are closed indefinitely, the cruise line is currently suspended, film and TV production has halted, and retail stores are shuttered.
While Chapek is confident that Disney will emerge from this even stronger, they will be taking necessary steps to manage the short- and long-term impact of the current state of things on the Company.
In light of this, senior executives in Disney will be helping to shoulder the burden by taking a direct reduction in pay. Effective April 5th, all VPs will take a 20% reduction in their salaries. Senior VPs will take a 25% reduction. Executive VPs and above with take a 30% reduction. Bob Chapek himself will be taking a 50% reduction in his salary; and executive chairman, Bob Iger, has chosen to forego 100% of his salary.
Chapek closed his message with gratitude for the dedication and resilience of Disney’s employees, asking them to continue to take care of themselves and their loved ones, stay well, and know that Disney is here to support them.