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Top Disney executives, including President Bob Iger and CEO Bob Chapek, will give up their 2020 bonuses “in light of the company’s circumstances this year” related to the coronavirus, according to a SEC document released on Tuesday. .
The change comes at a time when the entertainment giant is struggling to meet some performance metrics due to the financial impact of the pandemic. Disney reported a loss of $ 2.8 billion for the full year and revenue of $ 65 billion, with its Parks, Experiences and Products segment reaching $ 7.4 billion for the entire year.
The pandemic forced Disney to delay many of its blockbuster movie releases, close its theme parks around the world, with some remaining closed indefinitely, extend the suspension of its cruise line and lay off some 32,000 employees. The company also ended its annual pass program and closed Radio Disney as part of a restructuring.
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Iger, who announced in February 2020 that he would step down as CEO and remain chairman until 2021, saw his total compensation package drop to $ 21 million in the company’s most recent fiscal year, which ended on October 3. . Iger received a salary of $ 1.56 million for the year, with shares and options of $ 6.9 million and $ 9.5 million, respectively.
Iger previously received a $ 41 million compensation package in fiscal 2019, with $ 10 million and 9.5 million in shares and options, respectively, and $ 65.6 million in fiscal 2018, with 35.3 million. and 8.2 million in shares and options, respectively, as an incentive to remain in the company after its original planned retirement date.
Meanwhile, Chapek, who took over from Iger after serving as president of Disney Parks, Experiences and Products since 2018, received a $ 14.1 million compensation package for his first year in office. A veteran of almost three decades at the company, Chapek earned a salary of $ 1.81 million, plus shares and options worth $ 6.13 million and $ 3.37 million, respectively.
The bonus cut comes in addition to the executives’ previous announcement last summer that they would accept a pay cut.
In addition, other top Disney executives, including senior executive vice president, general counsel and secretary Alan Braverman, chief financial officer Christine McCarthy, senior executive vice president and director of communications Zenia Mucha, and senior executive vice president and chief resources officer Jayne Parker, have seen their pay packages drop significantly.
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In a letter to shareholders, Disney’s compensation committee said that its compensation plan was “designed to motivate executives and recognize them for their unwavering efforts and leadership during the pandemic, taking into account the pandemic’s performance impact. of the Company and the employee’s entire workforce. “
“The Committee considered this background when determining the compensation of the Company’s executives, including actions to significantly reduce NEO compensation and to further incorporate ESG metrics for diversity and inclusion in the executive compensation structures,” noted the committee.
In the future, the compensation committee plans to remove adjusted earnings per share and adjusted return on invested capital as bonus metrics for fiscal year 2021 and will add revenue as a new criterion.
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Despite the company’s difficulties, Disney saw a boost in the streaming segment of its business, with Disney + gaining a total of 86.8 million subscribers since its launch in November 2019. Disney said during its Investor Day presentation in December it expects that number to grow to somewhere between 230 million to 260 million subscribers by 2024.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| DIS | WALT DISNEY COMPANY | 172.26 | +0.82 | + 0.48% |
Disney is diving deep into streaming, with plans to spend between $ 14 and $ 16 billion on streaming content between now and 2024. As a result, the company will increase the price of the service to $ 7.99 a month from March 2021.
The list of Disney movies and television shows includes more than 50 new projects, with 10 new Marvel series, 10 new “Star Wars” series, 15 live-action Disney, Disney Animation and Pixar and 15 new live-action Disney, Disney Animation and feature films from Pixar.
The company will also bring new content to Hulu and ESPN +. Hulu now has 38.8 million subscribers, while its cable cut Hulu + Live TV has 4 million paying subscribers, making it the fifth largest pay TV provider overall. Hulu is expected to have between 50 million and 60 million subscribers by the end of fiscal year 2024.