Bob Iger transitioned from CEO to executive chairman of Disney last month

By Eric Todisco
March 30, 2020 02:32 PM
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"Beauty And The Beast" New York Screening
Bob Iger
| Credit: Steven Ferdman/Patrick McMullan/Getty

Bob Iger, the former CEO and now executive chairman of Disney, will be forgoing his entire salary amid the coronavirus pandemic, The Hollywood Reporter and Variety reported Monday.

Bob Chapek, who succeeded Iger, 69, as CEO last month, has taken a 50% pay cut, according to both outlets.

The cuts call for a 20% reduction in salary for all VP level executives starting April 5, Variety reported, while Senior VPs will see a 25% pay cut and executive VPs and above will see a 30% cut.

The changes were reportedly outlined in a memo sent to Disney staffers Monday. “This temporary action will remain in effect until we foresee a substantive recovery in our business,” reads the letter, according to both outlets.

According to THR, Iger earned $47.5 million as chairman and CEO in the latest fiscal year, while the year prior he earned $65.6 million.

Chapek’s base salary as Disney CEO is $2.5 million, per THR, with an annual target bonus of $7.5 million and an annual long-term incentive grant of $15 million.

Bob Chapek
Bob Chapek
| Credit: Gerardo Mora/Getty Images

Iger announced he was stepping down as CEO on Feb. 25 and that his transition out of the role was effective immediately.

“With the successful launch of Disney’s direct-to-consumer businesses and the integration of Twenty-First Century Fox well underway, I believe this is the optimal time to transition to a new CEO,” he said.

Under Iger’s leadership, the company launched Disney+ and acquired Star Wars, Pixar and the massively successful Marvel franchise. Iger is set to continue serving as executive chairman in the company through to the end of his contract on Dec. 31, 2021.

Disney has taken a hard hit from the coronavirus pandemic. On Friday, the company confirmed Disneyland and Walt Disney World would now be closed indefinitely after both parks had planned to reopen at the end of March.

Currently, Disney has closed all of its attractions, hotels and stores in North America. This includes Aulani resort in Hawaii, which was the last Disney property in the U.S. to close in the midst of the pandemic, as PEOPLE reported on Monday, March 23.

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This is the only the third time in history that Disneyland has closed completely for reasons other than weather. Previously, Disneyland shut down following the terrorist attacks on September 11, 2001, and the national day of mourning after President John F. Kennedy was assassinated in 1963.

Walt Disney World in Orlando has only ever shut its doors due to the threat of hurricanes — most recently, Hurricane Dorian in September 2019 — and the day after the 2001 attacks.

Neither park has ever closed due to the outbreak of an illness.

As of Monday afternoon, March 30, there are at least 144,372 confirmed cases of coronavirus in the United States, while 2,527 people have died from coronavirus-related illnesses.

As information about the coronavirus pandemic rapidly changes, PEOPLE is committed to providing the most recent data in our coverage. Some of the information in this story may have changed after publication. For the latest on COVID-19, readers are encouraged to use online resources from CDC, WHO, and local public health departments. To help provide doctors and nurses on the front lines with life-saving medical resources, donate to Direct Relief here.