Coronavirus Economic Impact: Bob Iger, Other Disney Executives To Take Salary Cuts

As the entertainment industry grapples with the impact of the coronavirus pandemic, Disney executives will be taking pay cuts to help the company remain stable for the foreseeable future. Chief among these cuts, outgoing CEO Bob Iger will forgo his salary entirely and his successor, Bob Chapek, will take a 50% reduction in salary, effective April 5.

“As we navigate through these uncharted waters, we’re asking much of you and, as always, you are rising to the challenge and we appreciate your support,” Chapek said in an email announcing the cuts. “Your dedication and resilience during this difficult time are truly inspiring and it gives me renewed confidence that will we come through this crisis even stronger than before, we have so many times in our company’s history.”

In addition to Iger and Chapek, vice-presidents within the company will take a 20% pay cut, senior vice-presidents a 25% cut, and executive vice-presidents a 30% cut. Iger’s salary in 2019 totaled $47.5 million. Chapek’s base salary as CEO was set at $2.5 million, with bonuses and long-term incentive grants totaling $22.5 million, but it is unclear what amount will be subject to the cut.

Iger announced his departure in February after nearly 15 years as CEO. He will remain with the company as an executive chairman through December 2021 and is reportedly focused on helping the Disney+ streaming service develop original content. Chapek previously served as the Chairman of Disney Parks, Experiences and Products.

Disney’s assets have been hit particularly hard by the global outbreak of COVID-19. The company has indefinitely delayed releases like “Mulan” and “Black Widow,” as well 20th Century Studios releases like “The New Mutants,” “Antlers,” and “The Woman in the Window,” as theaters worldwide shutdown to help halt the spread of the disease. Disney’s theme parks have also closed down entirely, with park cast members receiving pay through April 18.