Marketwatch article on Chapek

[SiandAm]

https://www.marketwatch.com/story/d...on-while-median-employee-pay-fell-11642697468
Can someone enlighten me as to what the shareholders are seeing that would cause a doubling of compensation?
Thanks!

 

[OKW Lover]

There's a real problem with this analysis. Several problems.

They compare disparate years.
They ignore unprecedented global disruptions
They compare partial year to full year

 

[MansionNut80]

Cast members make how much?

 

[OKW Lover]

Cast members make how much?

According to the story the median pay was ~$50k. Of course that encompasses a lot of people across the entire Walt Disney Company so it includes ABC, ESPN, Movies, etc. I'm guessing the slight decrease from previous year is due to folks being unable to work during the pandemic.

 

[Aluminum Falcon]

https://www.marketwatch.com/story/d...on-while-median-employee-pay-fell-11642697468
Can someone enlighten me as to what the shareholders are seeing that would cause a doubling of compensation?
Thanks!

He's still nowhere near what Iger was making. I would say Disney doesn't have an heir apparent, and during these turbulent times, companies try to keep the man at the helm in place, (right or wrong) to guide them through. I don't think it's all that crazy

 

[popy]

Think they need to , find one a lot cheaper, and a whole lot better, a little smarter, and that should very easy to do.

 

[AvidDisReader]

Oh my goodness, why do people so stress out about executive pay. All executives of large corporations make millions of dollars in pay, bonus, and stock options. That is the way it works in our capitalistic society. If you do not like it, we could just become a socialist society and have the government own everything--that has work really well for Russia and China.

 

[lockets]

Oh my goodness, why do people so stress out about executive pay. All executives of large corporations make millions of dollars in pay, bonus, and stock options. That is the way it works in our capitalistic society. If you do not like it, we could just become a socialist society and have the government own everything--that has work really well for Russia and China.

As Abigail Disney (granddaughter of Roy Disney) imparts in her documentary on Disney pay inequity "when her grandfather Roy O. Disney was CEO in 1967 he earned about 75 times the lowest-paid worker, and Disneyland employees in the 1950s and 1960s could afford to raise families, buy cars and houses with their incomes. Current workers profiled in the film live with their parents and get groceries from food banks. In 2018, Iger earned more than 1,400 times the median employee’s pay."

Nothing against capitalism. I'm a capitalist. But, with the average Disney worker making $50K do you think people can really survive on that? Perhaps a better question is can they thrive on that? Thrive enough to purchase a home, car, raise a family, *go to disney on vacation from time to time*, and have no debt except for a mortgage for instance? And if they cannot. Ok. One can argue "Oh well - they should go elsewhere to make more money because it's not the CEO's fault or society's they are making that little."

And even if one were to argue "Hey - a CEO position comes with huge responsibility that should be compensated accordingly. Many executives make huge amounts, and Chapek is not only in charge of the parks but he's in charge of everything else that's under the Disney umbrella..."

Did the pay really need to jump from 75x of the average worker to 1,400x of the average worker?

Where does the line between capitalism and just an all out scam occur? IDK - but it kind of sounds like the reality of many socialist countries to me - actually. Pay everyone a lower rate and the big money funnels to the corrupt leaders at the top. Disney doesn't actually sound capitalist to me right now. Capitalism is supposed to trickle down to everyone. Disney sounds more like a socialist structure. Even a small example of paying $$$ for a room where there's barely any housekeeping (and we are no longer in lockdown so there's no excuse for continuing to cut housekeeping), and I'm scavenging for coffee stirrers at the QS because they won't replace them in my room for a week doesn't feel like being in a capitalist environment to me - it feels socialist. But, that's just my perception of it and other people are free to have their own.

 

[ChipnDale79]

Oh my goodness, why do people so stress out about executive pay. All executives of large corporations make millions of dollars in pay, bonus, and stock options. That is the way it works in our capitalistic society. If you do not like it, we could just become a socialist society and have the government own everything--that has work really well for Russia and China.

no happy medium? one way or the other?

Careful, this would could get shut down pretty quickly.

Society needs to do better, it needs to start valuing employees more. The pay gap between executives and workers is a real problem in our society.

For whatever reason we've become numb to the fact that some people work multiple full time jobs and still struggle to feed a family, while a CEO makes tens and hundreds of millions of dollars.

 

[New Mouse]

no happy medium? one way or the other?

Careful, this would could get shut down pretty quickly.

Society needs to do better, it needs to start valuing employees more. The pay gap between executives and workers is a real problem in our society.

For whatever reason we've become numb to the fact that some people work multiple full time jobs and still struggle to feed a family, while a CEO makes tens and hundreds of millions of dollars.

I'd also fault the employee though. A solid majority of them could do better elsewhere and choose not to.

What we are seeing in this great resignation is that people are finally realizing 1. Disney the company doesn't care about them and 2. They can do better elsewhere.

Disney kicked people to the curb and expected they would be there when the doors opened back up. Boy were they wrong.

 

[ChipnDale79]

I'd also fault the employee though. A solid majority of them could do better elsewhere and choose not to.

What we are seeing in this great resignation is that people are finally realizing 1. Disney the company doesn't care about them and 2. They can do better elsewhere.

Disney kicked people to the curb and expected they would be there when the doors opened back up. Boy were they wrong.

I think its fair to fault the employee to some level, but i would shoulder the vast majority of it on the employer. Yes people are quitting jobs left and right because they can, and dont want to put up with the crap employers have putting people through for years. however there are a lot of people that just cant quit a job because they want to, myself included.

 

[dez1978]

just a thought. Chapek made rounding up 33 million last year. There were 223,000 Disney employees world wide. Even if we took his entire salary, all 33 million and divided it between all the employees, thats $148 each. Do CEO's need to make that kind of money, no, probably not. But even if you took it all way and paid it out to everyone else, it wouldn't make a real difference.

 

[Aluminum Falcon]

Oh my goodness, why do people so stress out about executive pay. All executives of large corporations make millions of dollars in pay, bonus, and stock options. That is the way it works in our capitalistic society. If you do not like it, we could just become a socialist society and have the government own everything--that has work really well for Russia and China.

I would make the point that CEOs didn't always make as much as they do now, i believe it all started in the 90's. I don't believe in government regulation, but if shareholders started voting down executive pay, that wouldn't be a bad thing in my mind. Just because people disagree with paying a CEO tens of millions of dollars, doesn't mean they are socialists, that is a very simplistic, ideologic way of looking at a very complex situation

 

[Aluminum Falcon]

I'd also fault the employee though. A solid majority of them could do better elsewhere and choose not to.

What we are seeing in this great resignation is that people are finally realizing 1. Disney the company doesn't care about them and 2. They can do better elsewhere.

Disney kicked people to the curb and expected they would be there when the doors opened back up. Boy were they wrong.

I think in lower wage jobs there is starting to be a change, but that will force changes at higher paying jobs. Those changes will cause higher prices that drive inflation, ect ect.... the only way to really combat that would be for employers to pay their employees more while taking less in revenue, and i don't see that happening

 

[middlechild]

I would make the point that CEOs didn't always make as much as they do now, i believe it all started in the 90's. I don't believe in government regulation, but if shareholders started voting down executive pay, that wouldn't be a bad thing in my mind. Just because people disagree with paying a CEO tens of millions of dollars, doesn't mean they are socialists, that is a very simplistic, ideologic way of looking at a very complex situation

Tax law was changed in the mid 90's. Here is an article about it: https://www.propublica.org/article/the-executive-pay-cap-that-backfired
"Clinton’s victory and a Democratic Congress resulted in a tax law change that limited companies’ deductions for executives’ compensation to $1 million per executive per year. That’s the amount that Clinton proposed for chief executives in “Putting People First,” a campaign book that he co-authored with Al Gore.
The compensation deduction limit, known to tax techies as Section 162(m) of the Internal Revenue Code, was adopted in a 1993 bill that also increased taxes on higher-income Social Security recipients and reduced deductions for business meals. "

Companies shifted to awarding stock and stock options instead of compensation after that time.

 

[Aluminum Falcon]

Tax law was changed in the mid 90's. Here is an article about it: https://www.propublica.org/article/the-executive-pay-cap-that-backfired
"Clinton’s victory and a Democratic Congress resulted in a tax law change that limited companies’ deductions for executives’ compensation to $1 million per executive per year. That’s the amount that Clinton proposed for chief executives in “Putting People First,” a campaign book that he co-authored with Al Gore.
The compensation deduction limit, known to tax techies as Section 162(m) of the Internal Revenue Code, was adopted in a 1993 bill that also increased taxes on higher-income Social Security recipients and reduced deductions for business meals. "

Companies shifted to awarding stock and stock options instead of compensation after that time.

I did see this a while back, i still don't understand how the Govt thought that was a good idea, it's essentially boils down to companies making stock out of thin air and handing it over to their CEO's, essentially costing the company nothing, while leaving shareholders holding the bag

 

[AvidDisReader]

Hasn't Abigail Disney had her 15 min of fame expired yet? For all her whining it has not stopped her from being worth more than 100 million due mostly from--you guessed it Disney stock. Talk about being a hipocrite, I just do not understand why no one calls her out.

 

[ChipnDale79]

Hasn't Abigail Disney had her 15 min of fame expired yet? For all her whining it has not stopped her from being worth more than 100 million due mostly from--you guessed it Disney stock. Talk about being a hipocrite, I just do not understand why no one calls her out.

Calls her out for wanting people to be treated better? interesting.

She's a disney, i'm shocked she's not worth a whole lot more than that.

 

[Aluminum Falcon]

Calls her out for wanting people to be treated better? interesting.

She's a disney, i'm shocked she's not worth a whole lot more than that.

I agree, yes she’s Wealthy, but she made that money mainly because of her family who created Disney, she can take the benefit of the gains Disney has had over the years, and still push them to be better, it doesn’t have to be an either or

 

[ChipnDale79]

I agree, yes she’s Wealthy, but she made that money mainly because of her family who created Disney, she can take the benefit of the gains Disney has had over the years, and still push them to be better, it doesn’t have to be an either or

this is in fact what her father did a couple times. Its been helpful in the past for a member of the Disney family to push the company to be better, in my opinion.