According to a new report by Deadline, due to the current COVID-19 pandemic, The Walt Disney Company’s executive chairman, Bob Iger, saw his pay package decrease to $21 million in fiscal 2020 from his previous $47 million payout he received in 2019–an amount, which included a large bonus.
In 2019, Iger’s pay package included a non-equity incentive compensation (bonus), which totaled to $21.75 million–an amount that accounted for almost half of all the wages he received that year. However, last year (2020), Iger saw a remarkable decrease in his bonus plan–the elimination of his bonus completely.
According to Disney’s proxy filed with the SEC on Tuesday, CEO Bob Chapek earned $14.2 million for the fiscal year ending in September (2020).
Both Iger and Chapek agreed to lower base salaries last year after The Walt Disney Company first came into financial troubles due to the COVID-19 Pandemic, which lead to the closing of the company’s theme parks around the world. The revenue from the theme parks division of the company is said to account for roughly one-third of all of Disney’s revenue.
The company also saw major losses in the box-office due to the closures of movie theaters. This, and the closure of the Disney Parks, lead to the company changing its focus to its streaming service Disney+. This news came in a company announcement late last year.
At the time of the initial hit to the company’s finances from the pandemic, Iger agreed to a base salary of $1.6 million, down from $3 million, and Chapek agreed to $1.8 million. In April, the company announced Iger would forgo 100% of his base salary and Chapek 50% of his. This announcement came with the news that salary decreases would also affect the company’s many other VPs, SVPs, and EVPs. These were later lifted on August 23.
What are your thoughts on Bob Iger and Bob Chapek’s major pay cuts brought on by the COVID-19 pandemic? Let us know in the comments!