Walt Disney Executives Earn Over 200 Million Won Per Day on Average
[Asia Economy Reporter Yujin Cho] Amid a global economic downturn prompting companies worldwide to implement company-wide cost-cutting measures, it has been revealed that a Walt Disney executive in the United States, who worked only 70 days, received an average daily salary exceeding 200 million KRW. There is growing public criticism that American companies continue the practice of 'inflated salaries,' where executives secure their pay regardless of performance.
According to the Wall Street Journal (WSJ) on the 18th (local time), Jeff Morell, former Disney Chief Corporate Officer (CCO), received a total salary of $8,365,403 (approximately 10.3 billion KRW) from January 24, when he joined, until April 29, when he resigned. Based on 70 working days, this amounts to an average daily salary of $119,505. Including an additional severance pay of $4,006,849, his average daily earnings reached $176,746 (about 220 million KRW).
That is not all. Disney also supported $500,000 in relocation expenses to help Morell and his family move from London, UK, to Los Angeles (LA), USA, and paid another $500,000 for family relocation two months after his resignation.
In Silicon Valley and other American companies, the practice of paying extremely high salaries regardless of performance has continued, based on the rationale that executive compensation can impact corporate value and is necessary to attract talented personnel.
Wall Street activist investor Nelson Peltz criticized this inflated salary practice and demanded participation from Disney’s board members. The criticism intensified particularly because Morell, who was responsible for public relations and government affairs, was dishonorably dismissed following a blunder involving Florida Governor Ron DeSantis, a Republican presidential candidate, over the controversial anti-LGBTQ education law.
Morell and then-CEO Bob Chapek caused significant damage to the company by incurring backlash such as the loss of tax benefits and the revocation of special administrative district status, due to their opposition to state government education policies.
In contrast, Apple CEO Tim Cook voluntarily decided to cut his salary by 40% this year. Cook is expected to receive $49 million this year, including a base salary of $3 million, a bonus of $6 million, and stock compensation worth $40 million. This is 40% of his salary from the previous year.
Bloomberg reported that Cook’s salary is linked to Apple’s performance, and despite receiving a record-high salary even during Apple’s stagnant stock price in 2021, which drew shareholder backlash, "it is very unusual for a CEO to voluntarily reduce their salary." Given that big tech companies have conducted intense restructuring by cutting over 170,000 jobs last year due to the economic downturn, Cook’s leadership in breaking the inflated salary practice has been positively evaluated.
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