A smartphone with displayed "Disney" logo is seen on the keyboard in this illustration taken March 24, 2020. /VCG
Walt Disney Co. will largely reduce payments for its top executives due to the impact caused on its business by the coronavirus. Executive Chairman Bob Iger will forgo his entire salary, and recently appointed CEO Bob Chapek will take a 50 percent pay cut to his base salary, according to a recent report from The Hollywood Reporter.
As one of the highest-paid executives in the entertainment circle, Iger earned 47.5 million U.S. dollars as Disney chairman and CEO in fiscal 2019. Chapek's base salary as CEO is 2.5 million U.S. dollars, with an annual target bonus of 7.5 million U.S. dollars, and an annual long-term incentive grant of 15 million U.S. dollars, according to the report.
Bob Iger arrives for the World Premiere of "Star Wars: The Rise of Skywalker" on December 16, 2019 in Hollywood, California. /VCG
Other executives at Disney will also take salary cuts, according to an email Chapek sent to employees. All vice presidents will have their salaries cut by 20 percent, and the figure is 25 percent and 30 percent for senior vice presidents and executive vice presidents respectively.
The salary cuts policy will be effective on April 5.
Bob Chapek stands for a photograph at an unveiling event of "Star Wars: Galaxy's Edge" at Walt Disney Co.'s Disneyland theme park in Anaheim, California, U.S., on May 29, 2019. /VCG
Disney's global business has been largely affected by the coronavirus. In mid-March, the company said it had decided "out of an abundance of caution" to postpone the debut of its epic action movie "Mulan" scheduled for March 27 – as well as April releases "The New Mutants" and "Antlers."
The company's productions also came to a halt, including "The Little Mermaid," "Shang-Chi and The Legend of the Ten Rings," "Home Alone," "The Last Duel," "Nightmare Alley," "Peter Pan & Wendy" and "Shrunk."
Meanwhile, all six Disney parks around the world have remained closed due to the global spread of coronavirus since mid-March. Earlier Disney said it could lose 175 million U.S. dollars in revenue if its parks in Hong Kong and Shanghai remain closed for two months. With all six parks now closed, the damage could be even greater.