Sources say the amended company contracts use the word "temporary" to describe salary reductions of 20 percent to 30 percent but offer no firm end date.
A battle is brewing between Disney executives and senior leadership over the company’s pay cuts that were disclosed March 30.
Multiple sources tell The Hollywood Reporter that the affected executives at the vp, senior vp and executive vp level are upset that the salary cuts were decided unilaterally and represent a 20 to 30 percent slash in their earnings. More alarmingly, the amended contracts sent to these executives provide no end date, and employees were given only two days to sign.
That move has sparked a backlash across the global conglomerate, which touted the cuts as necessary “as we navigate through these uncharted waters.” Chairman Bob Iger will forgo his entire salary and recently named CEO Bob Chapek will take a 50 percent reduction to his base salary as Disney grapples with the novel coronavirus pandemic.
A Disney vp typically earns somewhere between $150,000 and $200,000 in base pay, according to sources, while an executive vp’s salary can top $700,000, depending on the department (marketing, distribution and creative executives historically make more than corporate functions). Some employees also are compensated via Disney stock.
But those familiar with the new reductions — 20 percent for vps, 25 percent for senior vps and 30 percent for executive vps — note that the bulk of Iger and Chapek’s compensation will remain untouched because the cuts only apply to their base salaries. In the case of Chapek, his base is $2.5 million, but his annual target bonus is $7.5 million and his annual long-term incentive grant is $15 million.
