14h24 PST 1/19/2021
in
Georg Szalai
,
Disney released total compensation to its top executives in a year when the company was hit hard by the pandemic shortly after Chapek took over as CEO.
The Walt Disney Co. released executive compensation to CEO Bob Chapek and executive president Bob Iger for the company’s last fiscal year, which ended on October 3.
It was a very unusual year, the first in which Chapek led the company, and with almost every part of Disney’s business impacted by the new coronavirus pandemic. The company says that “in light of the company’s circumstances this year,” all of its top executives would give up their bonuses, in addition to the salary cuts announced last summer.
Chapek, who was elevated to the role of CEO in late February, has been with the company since 1993 and has served as president of Disney Parks, Experiences and Products since 2018. His compensation package for the most recent fiscal year totaled $ 14.1 million, reflecting the challenges of the pandemic and a lower overall compensation package than Iger’s.
Iger’s remuneration in the most recent fiscal year was $ 21 million, compared to $ 47.5 million in the previous fiscal year and $ 65.6 million in fiscal 2018, which was driven by a stock package which Iger received as an incentive to stay with the company after his original planned retirement date.
Disney disclosed the remuneration of top executives in a regulatory proceeding with the Securities and Exchange Commission. All of the company’s top executives have seen their pay drop significantly compared to the previous year.
In a letter to shareholders, Disney’s compensation committee wrote that the company’s compensation plan for 2020 was “designed to motivate executives and recognize them for their unwavering efforts and leadership during the pandemic, taking into account the impact of the pandemic in the Company’s financial performance and the broader workforce of employees … the Committee considered this background when determining the remuneration of company executives, including actions to significantly reduce NEO compensation and further incorporate ESG metrics for diversity and inclusion in the progressive executive pay structures.
Both Chapek and Iger suffered wage cuts amid the pandemic. Last week, Los Angeles Mayor Eric Garcetti also revealed that Iger and his wife, USC Annenberg’s Dean Willow Bay, donated $ 5 million to small businesses affected by the pandemic.
The compensation packages also reflect the change in Disney’s leadership, with Iger transferring control of everyday life to Chapek almost a year ago. As executive chairman, Iger has focused his efforts on Disney’s content efforts, especially for its streaming platforms. Iger was also discussed as a potential ambassador for the next Biden government, whether in China or the UK
It was also an important year for Disney strategically, even with the new coronavirus pandemic wreaking havoc on the company’s business, closing its theme parks, cruise ships and TV and film productions, while accelerating the move to streaming, which the company is leaning on via Disney + and Hulu.
On an investor day held last month, Disney announced that Disney + had surpassed 86 million subscribers and laid the groundwork for dozens of original films and TV shows to debut on the service.
At the same time, Disney suffered a $ 7 billion blow to its theme park business and laid off some 32,000 employees due to the impact of the pandemic.
“As CEO, and during one of the most challenging environments the company faced, Mr. Chapek skillfully managed the enormous disruption to the company’s business, while at the same time restructuring Disney’s media and entertainment business to feed the creative and financial market. long-term growth of the company, “wrote the compensation committee in its letter. “For his part, Mr. Iger has done an excellent job of overseeing the company’s creative production to help drive the successful launch of Disney + and position our DTC platforms for future success.”