Another “Save Disney” Campaign?

[_caleb]

Abigail Disney has been a vocal critic of the Company’s treatment of low-paid Cast Members and high-paid Executives. But it’s starting to sound like maybe she’s ready to do some meddling.

“I am a little bit about saving the company over the long term. I think the company needs to be saved from itself.”

Disney “Needs to be Saved From Itself,” Says Abigail Disney

At the core of Disney’s concerns is the chasm between what the C-suite is paid and what the thousands of hourly and low-level Disney “castmembers” are paid.

www.hollywoodreporter.com

Sounds a bit like Dear Old Dad.

I know plenty of you are not fans of Abby, but it would be interesting if she decided to put some effort into making changes at the Company. Though she does not have an official role with the Company, she does seem to have a pretty good sense of what’s gone wrong at the top.

Looks like savedisney.com is available.

 

[Magic Crush Drop]

Do you think she will have the support of the smaller investors?

 

[seascape]

Abigail Disney has been a vocal critic of the Company’s treatment of low-paid Cast Members and high-paid Executives. But it’s starting to sound like maybe she’s ready to do some meddling.

“I am a little bit about saving the company over the long term. I think the company needs to be saved from itself.”

Disney “Needs to be Saved From Itself,” Says Abigail Disney

At the core of Disney’s concerns is the chasm between what the C-suite is paid and what the thousands of hourly and low-level Disney “castmembers” are paid.

www.hollywoodreporter.com

Sounds a bit like Dear Old Dad.

I know plenty of you are not fans of Abby, but it would be interesting if she decided to put some effort into making changes at the Company. Though she does not have an official role with the Company, she does seem to have a pretty good sense of what’s gone wrong at the top.

Looks like savedisney.com is available.

Abigail Disney is ignorant. Disney is already increasing Cast Members pay to s minimum of $15.00 an hour. Plus Disney pays for College courses for all Cast Members. This does not include other benefits and payroll taxes. When taking everything into account, Disney is actually paying better than their competitors. Though, I wish they would pay even more, for Abigail to complain as much as she does only shows her hypocrisy. Why isn't she complaining about why actors, directors, editors and producers make in Hollywood and not just what Disney pays it's executives? Why is she keeping her wealth, which she had nothing to do with except being a born a Disney?

 

[_caleb]

Do you think she will have the support of the smaller investors?

Not sure. But if she plays her cards right, she could have the support of the public, which might be the same thing.

 

[_caleb]

Abigail Disney is ignorant. Disney is already increasing Cast Members pay to s minimum of $15.00 an hour. Plus Disney pays for College courses for all Cast Members. This does not include other benefits and payroll taxes. When taking everything into account, Disney is actually paying better than their competitors. Though, I wish they would pay even more, for Abigail to complain as much as she does only shows her hypocrisy. Why isn't she complaining about why actors, directors, editors and producers make in Hollywood and not just what Disney pays it's executives? Why is she keeping her wealth, which she had nothing to do with except being a born a Disney?

She isn’t keeping her wealth. Her Daphne Foundation supports organizations to fight poverty in NYC.

I agree that Disney increasing CM minimum wages is a good step but not enough. It’s actually not the initial hire rate that concerns me, it’s that frontline CMs will essentially never make a living wage. Also, I think Abigail is right about Executive compensation at Disney being ridiculous.

If she is mounting an effort to make changes at Disney, it won’t be about CM mimimum wage, though. What do you think about her charges that the company has been all about shareholders and not about customers? To me, that’s the biggest “heart and soul” issue at the Company, and it sounds like Abigail get this.

 

[seascape]

She isn’t keeping her wealth. Her Daphne Foundation supports organizations to fight poverty in NYC.

I agree that Disney increasing CM minimum wages is a good step but not enough. It’s actually not the initial hire rate that concerns me, it’s that frontline CMs will essentially never make a living wage. Also, I think Abigail is right about Executive compensation at Disney being ridiculous.

If she is mounting an effort to make changes at Disney, it won’t be about CM mimimum wage, though. What do you think about her charges that the company has been all about shareholders and not about customers? To me, that’s the biggest “heart and soul” issue at the Company, and it sounds like Abigail get this.

As for Disney caring about it's customers, what do you want. The parks were filled to capacity in 2019. If the ticket prices were $35.00 a day every day would be packed like Christmas and the enjoyment would fall. Having high ticket prices keep attendance levels too high but manageable. In fact, I would like Disney to build more resorts and limit attendance to anmual pass holders and those staying on site, but that will never happen.

Back to Cast Members pay. The Cast Members want the parks open and more visitors. There was a story on the Orlando news about a Presbyterian Church having a fair to benefit Cast Members and one of the unemployed Cast Members spok saying she wanted more tourists to come because she knows without them the jobs can't return. Personally, I can't wait and hope that my wife gets her shot soon so we can go in January, otherwise we have to wait until April. If you care about the Cast Members put your money where your mouth is and go to WDW, if not send your money to the Cast Members Food Pantry but if you don't do anything, stop complaining. The Cast Members want to work and while they would like more money, who doesn't, they know Disney is not a bad place to work.

 

[_caleb]

As for Disney caring about it's customers, what do you want. The parks were filled to capacity in 2019. If the ticket prices were $35.00 a day every day would be packed like Christmas and the enjoyment would fall. Having high ticket prices keep attendance levels too high but manageable. In fact, I would like Disney to build more resorts and limit attendance to anmual pass holders and those staying on site, but that will never happen.

Back to Cast Members pay. The Cast Members want the parks open and more visitors. There was a story on the Orlando news about a Presbyterian Church having a fair to benefit Cast Members and one of the unemployed Cast Members spok saying she wanted more tourists to come because she knows without them the jobs can't return. Personally, I can't wait and hope that my wife gets her shot soon so we can go in January, otherwise we have to wait until April. If you care about the Cast Members put your money where your mouth is and go to WDW, if not send your money to the Cast Members Food Pantry but if you don't do anything, stop complaining. The Cast Members want to work and while they would like more money, who doesn't, they know Disney is not a bad place to work.

I wouldn’t mind Disney capping attendance to keep crowd levels in check. That would be an example of putting customers first (at the expense of revenue), and I know it will never happen. Or expand to increase capacity (rather than closing attractions), so the crowds would thin out. Lots they could do to create a better guest experience, but because they’re not putting the guest first, will never happen.

Cast Members do not need the parks open, they need paychecks. These do not have to be the same things. Disney could have continued to pay CMs during the closures. If they had continued to reduce Executive compensation (which were temporarily cut at the beginning of the pandemic shutdowns), and if they had not spent billions to buy back shares in the Company, every CM could still have a job and receive at least a portion of their salaries without having to be at risk of exposure to the virus. This would be an option of Disney actually cared about its employees, but they don’t, so it would never happen.

 

[seascape]

I wouldn’t mind Disney capping attendance to keep crowd levels in check. That would be an example of putting customers first (at the expense of revenue), and I know it will never happen. Or expand to increase capacity (rather than closing attractions), so the crowds would thin out. Lots they could do to create a better guest experience, but because they’re not putting the guest first, will never happen.

Cast Members do not need the parks open, they need paychecks. These do not have to be the same things. Disney could have continued to pay CMs during the closures. If they had continued to reduce Executive compensation (which were temporarily cut at the beginning of the pandemic shutdowns), and if they had not spent billions to buy back shares in the Company, every CM could still have a job and receive at least a portion of their salaries without having to be at risk of exposure to the virus. This would be an option of Disney actually cared about its employees, but they don’t, so it would never happen.

You are buying into a system that would never work. Disney can't pay all it's employees for a year with no revenue coming in. If it weren't for WDW being open, 70,000 Cast Members would be out of a job. Disneyland is down to the bear staff needed to keep the park in reasonable condition. Disney has only cut 32,000 jobs between the 2 locations, that is less than 1/3 of the Cast Members. I know it's a lot but lets be real, only a person that has no understanding of business can believe 100,000 cast members can be paid $600 and up a week for a full year with the parks closed. Paying 100,000 Cast Members $15 an hour 40 hours a week would actually be $3,120,000,000.00 and we know there are Cast Members making more than $15.00 an hour plus that does not include payroll taxes and benefits. Add property taxes, insurance, utilities and maintenance supplies and it's billions more. Why doesn't Abigail also say that during the lockdown that California stop all taxes on businesses that they ordered closed? Ot the restaurants that NY closed?

 

[_caleb]

You are buying into a system that would never work. Disney can't pay all it's employees for a year with no revenue coming in. If it weren't for WDW being open, 70,000 Cast Members would be out of a job. Disneyland is down to the bear staff needed to keep the park in reasonable condition. Disney has only cut 32,000 jobs between the 2 locations, that is less than 1/3 of the Cast Members. I know it's a lot but lets be real, only a person that has no understanding of business can believe 100,000 cast members can be paid $600 and up a week for a full year with the parks closed. Paying 100,000 Cast Members $15 an hour 40 hours a week would actually be $3,120,000,000.00 and we know there are Cast Members making more than $15.00 an hour plus that does not include payroll taxes and benefits. Add property taxes, insurance, utilities and maintenance supplies and it's billions more. Why doesn't Abigail also say that during the lockdown that California stop all taxes on businesses that they ordered closed? Ot the restaurants that NY closed?

Disney could absolutely pay all its employees for a year, even if the parks were closed. Estimates are that U.S. parks employ around 150,000 CMs and total payroll is estimate to be around $500M/month. (That averages out to $3300/mo. per Cast Member, but base pay is around $10/hr. or $1200/mo).

Despite the park closures, Disney made $11.47 Billion in revenue in Q3 of 2020. Disney‘s top 20 Executives received $338 million in total compensation in the three years before the pandemic.

It’s not just Abigail who is voicing concern. A growing number of shareholders are saying that Disney needs to put CMs above revenue. Consider the huge PR value of Disney taking care of CMs rather than laying them off. Consider the goodwill it would garner among CMs, and loyalty (which would reduce turnover, which would also save a lot of money).

Not all employees would need to be paid to stay home. Disney is still making money off the parks. Have you seen all the Disney+ specials that are being filmed inside the parks? Those productions employ lots of people, and there are other creative ways to put employees to work.

Look, I get it—old-school free market thinking puts payroll lower on the priority list than profits. But Disney is supposed to be a different kind of company, and Abigail’s point seems to be that it could be today.

 

[seascape]

Disney could absolutely pay all its employees for a year, even if the parks were closed. Estimates are that U.S. parks employ around 150,000 CMs and total payroll is estimate to be around $500M/month. (That averages out to $3300/mo. per Cast Member, but base pay is around $10/hr. or $1200/mo).

Despite the park closures, Disney made $11.47 Billion in revenue in Q3 of 2020. Disney‘s top 20 Executives received $338 million in total compensation in the three years before the pandemic.

It’s not just Abigail who is voicing concern. A growing number of shareholders are saying that Disney needs to put CMs above revenue. Consider the huge PR value of Disney taking care of CMs rather than laying them off. Consider the goodwill it would garner among CMs, and loyalty (which would reduce turnover, which would also save a lot of money).

Not all employees would need to be paid to stay home. Disney is still making money off the parks. Have you seen all the Disney+ specials that are being filmed inside the parks? Those productions employ lots of people, and there are other creative ways to put employees to work.

Look, I get it—old-school free market thinking puts payroll lower on the priority list than profits. But Disney is supposed to be a different kind of company, and Abigail’s point seems to be that it could be today.

So, you admit that Disney is paying it's
themepark Cast Members $6 billion dollars a year. I would like to see them pay more, but $6 billion is much more than the $113 million a year for top managers that you mentioned. As for Parks and Resorts, they list $1.098 billion in the last quarter and that is with a less cast members. How much do you want the company to lose? As a whole the company lost $710 million in the quarter, meaning Media and Studios subsidized the parks losses. Hopefully, in the December quarter, they can cover the entire loss in the Parks and Resorts Division but for anyone to say Iger shouldn't have purchased Fox, Pixar, Lucas Films and Marvel, they are key to Disney having the financial strength to survive Covid19. Further, Disney is outrighted cheap when it comes to dividends versus other companies. Abigail is wrong when it comes to that.

 

[_caleb]

So, you admit that Disney is paying it's
themepark Cast Members $6 billion dollars a year. I would like to see them pay more, but $6 billion is much more than the $113 million a year for top managers that you mentioned. As for Parks and Resorts, they list $1.098 billion in the last quarter and that is with a less cast members. How much do you want the company to lose? As a whole the company lost $710 million in the quarter, meaning Media and Studios subsidized the parks losses. Hopefully, in the December quarter, they can cover the entire loss in the Parks and Resorts Division but for anyone to say Iger shouldn't have purchased Fox, Pixar, Lucas Films and Marvel, they are key to Disney having the financial strength to survive Covid19. Further, Disney is outrighted cheap when it comes to dividends versus other companies. Abigail is wrong when it comes to that.

I‘m not saying that Executive pay would cover all payroll costs. I’m saying it’s indicative of what the company values, and that isn’t CMs (or, for that matter, customers and guests).

Did you not see the $11.47 Billion Disney made in revenue during a single quarter in the middle of a pandemic?

The problem (and this is Abigail’s point) isn’t limited to how Disney is functioning now, but how it’s been functioning for the last several years. The IP purchases, lack of business diversification, stock buybacks, and sky-high Executive compensations show what the company values.

A healthy company diversifies its business enough that one part can subsidize another in an emergency like this. Disney went all in on the easy money (parks/resorts, cruise lines, etc.), which opened them up to risk when the travel/tourism industry disappeared overnight.

The purchase of Marvel, LucasFilm, and Fox was a shortcut. Rather than develop their own IP (which Walt built an empire doing), Iger bought the IP. This has obviously generated revenue for them, but this means they also purchased (rather than built) their audiences, which raised the stakes for their handling of each IP, a problem which Disney continues to try to spend their way out of.

The bottom line is that Disney isn’t the same kind of Company it was when it was founded. Abigail is saying that it’s gone too far, and I think this message will resonate with a lot of people.

 

[seascape]

I‘m not saying that Executive pay would cover all payroll costs. I’m saying it’s indicative of what the company values, and that isn’t CMs (or, for that matter, customers and guests).

Did you not see the $11.47 Billion Disney made in revenue during a single quarter in the middle of a pandemic?

The problem (and this is Abigail’s point) isn’t limited to how Disney is functioning now, but how it’s been functioning for the last several years. The IP purchases, lack of business diversification, stock buybacks, and sky-high Executive compensations show what the company values.

A healthy company diversifies its business enough that one part can subsidize another in an emergency like this. Disney went all in on the easy money (parks/resorts, cruise lines, etc.), which opened them up to risk when the travel/tourism industry disappeared overnight.

The purchase of Marvel, LucasFilm, and Fox was a shortcut. Rather than develop their own IP (which Walt built an empire doing), Iger bought the IP. This has obviously generated revenue for them, but this means they also purchased (rather than built) their audiences, which raised the stakes for their handling of each IP, a problem which Disney continues to try to spend their way out of.

The bottom line is that Disney isn’t the same kind of Company it was when it was founded. Abigail is saying that it’s gone too far, and I think this message will resonate with a lot of people.

Disney is diversified. In fact, I expect the company will break even this quarter or even show a small profit, thanks to election advertising and Disney streaming services payments to the studios. However, if they were still paying all the Cast Members, they would be losing billions a year.

Please, go back and check my posts from March. I supported paying all Cast Members for the first couple of months. They did and they also picked up the full cost of health insurance and kept the free college benefits. Unfortunately, no company could keep doing that for a year. For anyone to say all Disney parks should be closed but Disney should still pay $6 billion in payroll and more in benefits with no money coming in is crazy. Until Disney's streaming reaches it's 2024 goals, there is no way the other Divisions could subsidize Parks and Resorts $8 to $10 billion a year. Fortunately, Bob Iger did set up the company to be able to accomplish that in 5 or so years. What has Abigail Disney ever done to grow tens of thousands of jobs, satisfy millions of customers and grow wealth for stockholders? After Walt's death Roy took over, then as usual the second generation almost destroyed the company and needed to bring in Michael Eisner. He did a good job until Frank Wells death and again to save the company it turned to Bob Iger. He may not have been the best leader for the Parks but no one can say he did not build the company up to the point that even a pandemic as bad as Covid19 could prevent the company's survival.

The company will not only survive but will thrive. It will be profitable in this fiscal year and well into the futre. There will be more profits to invest in the parks and more money to not only reach the $15.00 starting wage but pay even more. This will be Bob Iger's legacy and his extremely high competition was well worth every penny. Then to add to their overall responsibilities, they are one of the greenest companies in existence and even getting better every day. Name me one company that has agreed not only to a $15.00 an hour starting wage but also is as green and environmentally friendly as The Walt Disney Company. Certainly, it's not Comcast with their not using any of their land for a solar farm or having their own wastewater plant to recycle the wastewater to water their property.

 

[Brer Oswald]

Not a big fan of Abigail. But her thoughts and viewpoints about the company in the past few years have aligned with my own. She's correct in what she is saying.

 

[_caleb]

Disney is diversified. In fact, I expect the company will break even this quarter or even show a small profit, thanks to election advertising and Disney streaming services payments to the studios.

Yes, streaming services defiantly helped. This is the kind of diversification I’m talking about. But that’s a recent development, and there was some luck in the timing.

However, if they were still paying all the Cast Members, they would be losing billions a year.

“Losing” is not the same thing as “losing out on.” Yes, it would cost Disney a lot of money to pay CMs during the closures, but that would come out of profits- the company would make less money, but it wouldn’t lose money it already has (and it has $23 Billion on hand). And as I mentioned, there would be financial benefit (in PR, loyalty/morale, increased longevity, alternative assignments for CMs, etc.)

Please, go back and check my posts from March. I supported paying all Cast Members for the first couple of months. They did and they also picked up the full cost of health insurance and kept the free college benefits. Unfortunately, no company could keep doing that for a year.

Disney could.

For anyone to say all Disney parks should be closed but Disney should still pay $6 billion in payroll and more in benefits with no money coming in is crazy.

But money is coming in. $3 Billion per month (as you mentioned, mostly from streaming).

Until Disney's streaming reaches it's 2024 goals, there is no way the other Divisions could subsidize Parks and Resorts $8 to $10 billion a year.

Right. But shuttered parks don’t cost $8-10 billion per year. And $11.47 billion was the revenue for 3 months, Disney could absolutely cover the costs of CM salaries (especially at emergency reduced levels) for a year (or longer).

Fortunately, Bob Iger did set up the company to be able to accomplish that in 5 or so years. What has Abigail Disney ever done to grow tens of thousands of jobs, satisfy millions of customers and grow wealth for stockholders?

I’m not sure. I don’t know much about Abigail. But I still haven’t heard a legitimate response to all the concerns she’s voiced.

After Walt's death Roy took over, then as usual the second generation almost destroyed the company and needed to bring in Michael Eisner. He did a good job until Frank Wells death and again to save the company it turned to Bob Iger. He may not have been the best leader for the Parks but no one can say he did not build the company up to the point that even a pandemic as bad as Covid19 could prevent the company's survival.

Right. I agree. Eisner/Wells were good for the parks (and the company as a whole). Disney today is not the same company it was in that era.

The company will not only survive but will thrive. It will be profitable in this fiscal year and well into the futre. There will be more profits to invest in the parks and more money to not only reach the $15.00 starting wage but pay even more.

”Thiving” is about more than just the bottom line. Disney isn’t thriving now- CMs morale is low, turnover is high, and creativity has been sapped. They are trading on acquired IP.

This will be Bob Iger's legacy and his extremely high competition was well worth every penny.

Iger’s legacy is the short-sighted spending spree for short-term gains. Bob Iger was not necessary to accomplish this. What did he bring to the table? If Disney just wanted an acquisition shark, they could have had a better one for far less than the $65M/yr they paid Iger.

I do applaud that he declined his salary during the closures and furloughs. But the guy has so much money, he won’t even miss it!

Then to add to their overall responsibilities, they are one of the greenest companies in existence and even getting better every day. Name me one company that has agreed not only to a $15.00 an hour starting wage but also is as green and environmentally friendly as The Walt Disney Company.

The Environmental Protection Agency (EPA) lists 69 Fortune 500 companies that have comitted to green energy. Google, Microsoft, Intel, Apple, and Walmart top the list. Disney isn’t even on the list.

Walmart’s average minimum wage is $14.76. In-N-Out in California has had a starting pay of $13/hr. for years. Starting pay for a CM at Disneyland is currently $11/hr.

Certainly, it's not Comcast with their not using any of their land for a solar farm or having their own wastewater plant to recycle the wastewater to water their property.

I’m no Universal apologist, if that’s what you’re getting at. And I love that Disney is environmentally responsible and is championing inclusion and diversity. I’m a fan of the company, but I’m more of a fan of what the company was and could be than I am of what it is today.

Even if Abigail is nothing more than a stakeholder and fan, I think she makes some valid points. I, for one, would rather Disney make a little less money and be a better kind of company.

 

[networkpro]

Do you think she will have the support of the smaller investors?

The family foundation that she is a part of are all small investors in the company, the only thing they have now is the name.

 

[networkpro]

Even if Abigail is nothing more than a stakeholder and fan, I think she makes some valid points. I, for one, would rather Disney make a little less money and be a better kind of company.

Disney is a publically traded company meaning that they have the responsibility to adhere to Generally accepted accounting principles ( otherwise known as GAAP). The four basic constraints associated with GAAP include objectivity, materiality, consistency and prudence. Objectivity includes issues such as auditor independence and that information is verifiable. Each division has its own budget as well as profit and loss statements. So while some divisions are making money, others are not. Its the business governance team that makes the decision on resource allocation, not one demonized CEO.

 

[seascape]

Yes, streaming services defiantly helped. This is the kind of diversification I’m talking about. But that’s a recent development, and there was some luck in the timing.

“Losing” is not the same thing as “losing out on.” Yes, it would cost Disney a lot of money to pay CMs during the closures, but that would come out of profits- the company would make less money, but it wouldn’t lose money it already has (and it has $23 Billion on hand). And as I mentioned, there would be financial benefit (in PR, loyalty/morale, increased longevity, alternative assignments for CMs, etc.)

Disney could.

But money is coming in. $3 Billion per month (as you mentioned, mostly from streaming).

Right. But shuttered parks don’t cost $8-10 billion per year. And $11.47 billion was the revenue for 3 months, Disney could absolutely cover the costs of CM salaries (especially at emergency reduced levels) for a year (or longer).

I’m not sure. I don’t know much about Abigail. But I still haven’t heard a legitimate response to all the concerns she’s voiced.

Right. I agree. Eisner/Wells were good for the parks (and the company as a whole). Disney today is not the same company it was in that era.

”Thiving” is about more than just the bottom line. Disney isn’t thriving now- CMs morale is low, turnover is high, and creativity has been sapped. They are trading on acquired IP.

Iger’s legacy is the short-sighted spending spree for short-term gains. Bob Iger was not necessary to accomplish this. What did he bring to the table? If Disney just wanted an acquisition shark, they could have had a better one for far less than the $65M/yr they paid Iger.

I do applaud that he declined his salary during the closures and furloughs. But the guy has so much money, he won’t even miss it!

The Environmental Protection Agency (EPA) lists 69 Fortune 500 companies that have comitted to green energy. Google, Microsoft, Intel, Apple, and Walmart top the list. Disney isn’t even on the list.

Walmart’s average minimum wage is $14.76. In-N-Out in California has had a starting pay of $13/hr. for years. Starting pay for a CM at Disneyland is currently $11/hr.

I’m no Universal apologist, if that’s what you’re getting at. And I love that Disney is environmentally responsible and is championing inclusion and diversity. I’m a fan of the company, but I’m more of a fan of what the company was and could be than I am of what it is today.

Even if Abigail is nothing more than a stakeholder and fan, I think she makes some valid points. I, for one, would rather Disney make a little less money and be a better kind of company.

Disney alone could never have started a streaming service that would be successful. They needed Pixar, Lucasfilm, Marvel and Fox. It is the Fox assets that gave them Hotstar and the Asian market. It is Star, Hulu and Fox that will allow them to become the number 1 streaming company in the world and if they didn't buy Fox Comcast would have bought out Disney's share of Hulu.

Look at Disney+ and realize their number 1 show is The Simpson's and their only new must watch show is Mandalorian, a Lucasfilm show. The biggest new coming shows and movies are all IP's Iger purchased. Soul, the Marvel Shows, and The Star Wars Shows. Look at Hulu and their new original shows, they all are coming from Fox. It is the streaming services that will provide the profits the company needs to expand the parks, pay the Cast Members more and accomplish what you want.

As for Bob Chapek, he has had 1 year on the job and that was all during Covid19. I say give him some time. If he doesn't invest in the parks and the Cast Members in the next few years, we can complain about him. But, to criticize him or anyone for reducing staff during Covid19 is just wrong. I will judge him on brining back all regular Cast Members over the next 12 to 15 months and only after that bring back the College Program. The next big anniversary is not WDW's 50th but the Company's 100th in 2023. Regrettably, due to Covid19 WDW's 50th is ruined. I say give Chapek time, realize they already agreed to a $15.00 an hour wage and are green.

 

[_caleb]

Disney is a publically traded company meaning that they have the responsibility to adhere to Generally accepted accounting principles ( otherwise known as GAAP). The four basic constraints associated with GAAP include objectivity, materiality, consistency and prudence. Objectivity includes issues such as auditor independence and that information is verifiable. Each division has its own budget as well as profit and loss statements. So while some divisions are making money, others are not. Its the business governance team that makes the decision on resource allocation, not one demonized CEO.

Nothing about GAAP constraints would preclude Disney doing more to take care of CMs.

I certainly didn't mean to demonize any CEOs. It's a broader system and foundational value system that has produced the huge discrepancy between their compensation and that of frontline CMs.

 

[_caleb]

Disney alone could never have started a streaming service that would be successful.

Of course they could have. It would have looked a lot different than what they built with Disney+, but they chose to compete with the giants in media (and they're doing a fine job!). But that was a choice- Disney chose to buy IP rather than develop IP. They could have chosen instead to go a different route and still have seen success in streaming.

It is the streaming services that will provide the profits the company needs to expand the parks, pay the Cast Members more and accomplish what you want.

This rationale makes sense in theory, but we've really yet to see it play out in reality. A great deal of all the money they make from selling other people's IP is going into investors' and Executives' pockets, and relatively little is going into the parks or to pay CMs.

As for Bob Chapek, he has had 1 year on the job and that was all during Covid19. I say give him some time. If he doesn't invest in the parks and the Cast Members in the next few years, we can complain about him. But, to criticize him or anyone for reducing staff during Covid19 is just wrong. I will judge him on brining back all regular Cast Members over the next 12 to 15 months and only after that bring back the College Program. The next big anniversary is not WDW's 50th but the Company's 100th in 2023. Regrettably, due to Covid19 WDW's 50th is ruined. I say give Chapek time, realize they already agreed to a $15.00 an hour wage and are green.

Yes, I'm willing to give Chapek some time. But it's not like he's new to Disney, or an unknown quantity. Between businessmen and creatives, we know which side he tends toward.

It's wrong to say he didn't have to lay off thousands of Cast Members during the pandemic when the company is still making billions in profits each month?

 

[seascape]

Nothing about GAAP constraints would preclude Disney doing more to take care of CMs.

I certainly didn't mean to demonize any CEOs. It's a broader system and foundational value system that has produced the huge discrepancy between their compensation and that of frontline CMs.

The problem with comparing CEO compensation with frontline Cast Members is The Walt Disney Company is not a themepark company but a media company that also owns themeparks. If Six Flags or Cedar Fair paid their CEO $66 million is would be wrong. However. Disney's CEO must be compared to other diversified media companies and Hollywood. Even using your numbers the average WDW Cast Member earns $3,300 a month. A new Cast Member currently make $12.00 an hour but will be $15.00 in s couple of years. In otherwords they can make $25,000 a year to start but the average person makes just under $40,000 and is not in poverty. There are also Cast Members doing much better, especially waiters and waitresses. Again, I want our Cast Members to be paid more. I even fill out every DVC survey saying that they should raise our dues to pay the Cast Members more. but I think the idea of comparing the compensation Chapek gets to a starting Cast Members at WDW is insane. His salary should be more than any actor gets paid working on movies.