During the COVID-19 theme park shutdown, Disney announced that Senior Executives for The Walt Disney Company would be taking salary cuts to help in the midst of the unprecedented effects of the pandemic on the company. Now, their paychecks are being restored while thousands of Cast Members remain on furlough.
Back in March, Bob Chapek sent out an email stating all senior executives would have their pays reduced throughout the closure period. Chapek had his salary reduced by 50%. Bob Iger agreed to forgo 100% of his salary. Various decreases in pay for SVPs, EVPs, and VPs were also enacted: VP by 20%, SVPs by 25%, EVP by 30%. The salary cuts went into place on April 5th.
According to an exclusive from Deadline, salary reductions will be lifted starting August 23rd. Walt Disney Company employees were informed yesterday that the pay reduction period would be ending this Sunday. Changes will be reflected in the executives’ next paychecks. It is unclear whether the pay restoration would impact Iger and Chapek. The salary cuts were meant to be temporary, and were to remain in effect until the company saw “a substantive recovery in business.”
As expected due to the theme park shutdown, results from the company’s recent Q3 earnings call were bleak, with a historic $2 billion reported in revenue loss from the company’s Parks, Experiences and Products division. However, Walt Disney World is operating at a meager profit, or at the very least exceeding variable costs, according to CEO Bob Chapek. Still, thousands of Cast Members, including performers, events staff, and more, are still furloughed at this time due to limited park hours and operations.
Source: Deadline
Disgusting.
Wow…that makes me feel sick to my stomach.
Wow how nice for them to get their paychecks back to pre-covid19. Sad to hear that there is still many employees out of work from Disney but the Executive’s keep getting richer. I’m sure Walt is rolling over in his grave.
The first measure they should have taken would have been to re-hire furloughed employees – Until the situation resume they should have kept cuts for executives.VP etc… Leading by example they say….
Can you blame me? Batteries are expensive!
I just wanted to point out that the way these stories are arranged on the homepage makes it look like Chapek is wearing a skipper hat.
Any furloughed Cast Members out there care to share how they feel about this.
Its BS! Im on furlough and this just proves that the dont care about us “valued employees”. So much dead wood got to keep their jobs.
I like the idea of the pay cut, especially considering the salary levels of the VPs. Now is not the time to restore those salaries. Say too soon. The pay should not be restored until things are back to normal.
I know, this isn’t anyone’s fault but considering the salary levels these people receive, they should wait.
This is crazy. How much will they jack up park and merchandise costs to make sure their millions are making it to their bank account. How about use the salary increase to help furloughed cast members instead of themselves.
PHEW!! I am so relieved to hear that Bobby C, is able to secure college tuition for his grandkids at Oxford!! I was concerned for their welfare.
Can’t say I have the answer but this is just not the time. Until everyone is back all should share in the cuts. Just wrong that those at the top, making decent pay, get restored while some remain unemployed. What type of overall workplace does this create?
Guess I’m the only one to think it may be okay for their salary to return. While it is unfortunate that some cast members are still furloughed due to lower park operations the executives are still having to work and deal with coming up with and implementing all of the changes to allow for park operations under new regulations and restrictions. While I am sympathetic to current furloughed cast members (being a former cast member myself) I do not think it is fair to say that all executives can’t get paid their normal rate just because of reduced park operations keeping cast members furloughed. Executives are working and that should be rewarded.
I can not disagree with you more. Executives make a lot more hourly and do not do anymore work then the line workers, I would content the line workers do more, if you are laying off workers you should not be increasing executives pay, even if it is just bringing back to pre-covid pay, looks terrible.