Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Disney heiress criticises CEOs for furloughing staff but continuing to pay executives $1.5bn bonuses

‘WHAT THE ACTUAL F***?????’ Abigail Disney tweets

Gino Spocchia
Thursday 23 April 2020 16:50 BST
Comments
Disney CEO Bob Iger to step down immediately

Walt Disney Co heiress Abigail Disney has criticised the company’s CEOs for furloughing more than 100,000 workers while paying executives millions of dollars in bonuses and dividends.

Ms Disney, an activist and filmmaker, tweeted on Wednesday: “WHAT THE ACTUAL F***?????”

Walt Disney announced this week that it would save up to $500m (£434m) a month across its theme parks and hotels by putting almost half its entire workforce on furlough.

That comes as coronavirus shutdowns in the US and Europe see the continued closure of Disney theme parks, resorts and entertainment productions.

More than 75 per cent of Disney’s 223,000 employees work in its Parks and Products division. Those workers, many of whom have been furloughed, fought for and won an increase in their minimum wage to $15 (£12) an hour in 2018.

Meanwhile, bosses at Walt Disney have protected company incentive schemes that account for most executives’ bonuses, which have totalled $1.5bn (£1.2bn) in the past.

“1.5 BILLION. That’d pay for three months salary to front line workers. And it’s going to people who have already been collecting egregious bonuses for years,” Ms Disney tweeted.

“Disney faces a rough couple of years, to be sure. But that does not constitute permission to continue pillaging and rampaging by management.”

“ANYONE, could have anticipated SOME crisis,” she continued. “That’s one of the things responsible managers do. And good, solid, competent management is why they get the ‘big bucks’ we are told.”

Disney chairman Bob Iger, who stepped down as CEO in February, announced he would forgo the remainder of his salary for this year. His successor, Bob Chapek, took a 50 per cent pay cut.

But executive bonus schemes, which have been protected during the pandemic, account for a much higher proportion of senior Disney CEO’s income. Mr Chapek’s bonus is expected to be about 300 per cent of his salary.

Disney employees placed on furlough will still be provided with company health insurance.

Ms Disney, who does not have a position at Walt Disney, said her position as an heir meant she carried the Disney name with her at all times.

”I have a conscience which makes it very difficult for me to sit by when I see abuses taking place with that name attached to them,” she added.

More than 26 million Americans have now claimed unemployment during the Covid-19 crisis.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in