Disney is asking its VPs, senior VPs, and executive VPs to take paycuts as the COVID-19 (coronavirus) crisis grinds production to a halt–some of them are not happy about it, according to The Hollywood Reporter sources.
The pay cuts range from 20 to 30 percent and are effective immediately. Some of those affected have complained that, while the contracts refer to the cuts as “temporary”, they have been given no firm end date. Employees were also given only two days to sign them. The cuts are voluntary in name, but refusing to sign could jeopardize the employee’s future career within the company.
While Chairman Bob Iger has forfeited his entire base salary of $3 million, and CEO Bob Chapek reduced his $2.5 million by 50 percent, some of those unhappy with the cuts have pointed out that both earn additional compensation in the tens of millions in a normal year.
Disney VPs can earn between $150,000 and $200,000, and are being asked to take a pay cut of 20 percent, THR reports. Executive VPs can earn upwards of $700,000, and will be asked to take a 30 percent pay cut.
Staffers lower down in the company may have more to worry about, however. Disney has announced plans to furlough thousands of employees whose jobs aren’t currently necessary, beginning on April 19.
As such a wide-reaching company in the entertainment industry, Disney is likely to bear quite a lot of this crisis’ box office cost. Big name productions like Mulan and Black Widow have been delayed, while production has halted on Disney+ original series The Falcon and The Winter Soldier. Disney’s other ventures have also been affected, with a total shutdown of all its theme parks and hotels.