After taking massive pay cuts due to the struggles surrounding the global pandemic, executives at Fox and the Walt Disney Company are reportedly getting their original pay restored.
According to Deadline, “the temporary pay cuts, which Fox imposed due to the impact of the coronavirus pandemic on the entertainment industry, ended July 31 as originally planned. The Disney temporary salary reductions, which had been open-ended, will be lifted starting August 23.”
Executives from both companies were reportedly notified via internal emails.
On April 22, Fox Corp. Executive chairman-CEO Lachlan Murdoch told staff that, he, chairman Rupert Murdoch, COO John Nallen, Chief Legal and Policy Officer Viet Dinh and CFO Steve Tomsic, will forgo their salaries through September 30. The rest of Lachlan Murdoch’s direct report executive team had their salaries reduced by 50% through the same period.
Beginning May 1st and lasting through July 31st, 2020, Fox executives at the VP level and above were to also reduce their salaries by 15%. Mid-Level Executive pay cuts ended as scheduled also on July 31st with the following announcement:
“Starting on August 1, 2020, your base salary will no longer be impacted. The sacrifice you have made over the past several months has allowed us to protect our full-time colleagues with salary and benefit continuation. For that, we all thank you.”
As for Disney executives, no official word has come from the House of Mouse confirming or denying anything. However, it is being reported that Disney Executives were informed yesterday, Wednesday, August 19 that the pay reduction was ending. The cease in pay cuts will be effective Sunday, and it will be refelted in the executives’ next paychecks.
When the decision was made back on March 30, we shared that all vice presidents would take a 20% cut, senior vice presidents would take a 25% cut, executive vice presidents and above would take a 30% cut. Disney’s CEO Bob Chapek himself took a 50% cut, and Disney’s Executive Chairman Bob Iger announced he would forgo his entire salary.
Chapek commented on the announcement back in March saying,
“As we navigate through these uncharted water, we’re asking much of you and, as always, you are rising to the challenge and we appreciate your support. Your dedication and resilience during this difficult time are truly inspiring and it gives me renewed confidence that will we come through this crisis even stronger than before, we have so many time in our company’s history.”
As of now, there is no word on how this news will affect Chapek and Iger individually.