Will Disney pass their new found wealth to the CM's ?

[POLY LOVER]

Most agree the CM's caring and continued love of wdw help make it what it is.
Will they see a pay increase from this new found wealth or maybe better health care coverage?

Diluted earnings per share (EPS) for the quarter increased 88% to $2.91 from $1.55 in the prior-year quarter. Excluding a $1.6 billion one-time net tax benefit associated with new U.S. federal income tax legislation (Tax Act) and certain other items affecting comparability(1), EPS for the quarter increased 22% to $1.89 from $1.55 in the prior-year quarter.

“The strategic investments we’ve made have driven meaningful growth over the long term, and we remain confident in our ability to continue to deliver significant shareholder value,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company. “We’re excited about what lies ahead, with a robust film slate, the launch of our ESPN direct-to-consumer business, new investments in our theme parks, and our pending acquisition of Twenty-First Century Fox.”

 

[Chef Mickey]

125,000 Disney employees will receive a $1,000 bonus.

In addition, they will set up a $50M education fund for cast members.

This was announced 2 weeks ago.

 

[POLY LOVER]

125,000 Disney employees will receive $1,000 bonus.

Penny's after taxes, it's one time then it's gone, disneys tax bonus lasts forever. Disney gets billions and the workers get penny's.

 

[Chef Mickey]

Penny's after taxes, it's one time then it's gone, disneys tax bonus lasts forever. Disney gets billions and the workers get penny's.

It's "pennies" by the way, and many companies did nothing. I work at a bigger company than Disney and we got nothing. Our tax savings will be even greater, btw.

Stop hating and be happy Disney actually stepped up pretty big time and gave the $1,000. They don't have to do anything. MANY companies did nothing.

 

[Goofyernmost]

Penny's after taxes, it's one time then it's gone, disneys tax bonus lasts forever. Disney gets billions and the workers get penny's.

Nothing is forever, I think it has been discussed before. New administration, huge budget deficit or reduced world credit ratings will get Congress awake and it will go away. The CM's are getting a much earned bonus from this years particular windfall. Disney will not make promises from something that is changing as the wind. Life 101.

 

[jloucks]

It's "pennies" by the way, and many companies did nothing. I work at a bigger company than Disney and we got nothing. Our tax savings will be even greater, btw.

Stop hating and be happy Disney actually stepped up pretty big time and gave the $1,000. They don't have to do anything. MANY companies did nothing.

All true, but also pretty transparent. It is like you winning the lottery, giving your kids $1,000, and then patting yourself on the back for it. I do enjoy wealth privilege tho, and $1,000 to me isn't that much. For sure that skews my perception of generosity.

Really, $1,000 is not all that generous at best, and a giant slap in the face at worst. In a way, in a big way, I respect your company more for not doing anything.

Put it another way, a one time $1000 is not going to change your life. Definitely wont change your lifestyle. All this tax cut will do is further stratify US wealth distribution. ...in a bad way.

You know me, I am a pretty big capitalist myself, but companies need to just own it. Don't insult the peoples collective intelligence by patting yourself on the back for a token.

Wait, what did I just say?

 

[jloucks]

Penny's after taxes, it's one time then it's gone, disneys tax bonus lasts forever. Disney gets billions and the workers get penny's.

Labor supply and demand. For better or worse, it makes very logical sense.

If nobody was willing to work, compensation would rise until they were.

What I find fascinating about Disney compensation levels, is that their model, were all companies to use it, would erode their national customer base. There is a lot of talk about the 1% being all hoggy of the $$$, but WDW sure is boat packed for that to be the case. That is a good sign, that so much wealth exists that the park is that packed.

 

[Chef Mickey]

All true, but also pretty transparent. It is like you winning the lottery, giving your kids $1,000, and then patting yourself on the back for it. I do enjoy wealth privilege tho, and $1,000 to me isn't that much. For sure that skews my perception of generosity.

Really, $1,000 is not all that generous at best, and a giant slap in the face at worst. In a way, in a big way, I respect your company more for not doing anything.

Put it another way, a one time $1000 is not going to change your life. Definitely wont change your lifestyle. All this tax cut will do is further stratify US wealth distribution. ...in a bad way.

You know me, I am a pretty big capitalist myself, but companies need to just own it. Don't insult the peoples collective intelligence by patting yourself on the back for a token.

Wait, what did I just say?

If I win the lottery, my kids might not even get $1000. What is with the entitlement mentality?

Disney has a business to run. This isn't a lottery effect. They are in a viciously competitive environment and again, do not make insane margins. It would only take a couple bad quarters to really test Disney's financial viability. It's a constant fight. 3 of their 4 businesses are in decline.

I think $1,000 is a nice gesture to their employees. They aren't going to take the $1.6B tax savings and divide it by the number of employees and continue it every year. This isn't communism. It's capitalism.

No one knows how the tax law will affect the economy. It's too hard to know. History will tell us.

If everyone gets richer, it's a positive. Don't confuse wealthy getting richer at a faster rate with failure. That's just how finance works. 10% for us isn't the same as 10% for Warren Buffett.

Saying you'd rather have nothing is just letting petty pride get in the way. I'll take a $1,000 any day of the week.

 

[Goofyernmost]

All true, but also pretty transparent. It is like you winning the lottery, giving your kids $1,000, and then patting yourself on the back for it. I do enjoy wealth privilege tho, and $1,000 to me isn't that much. For sure that skews my perception of generosity.

Really, $1,000 is not all that generous at best, and a giant slap in the face at worst. In a way, in a big way, I respect your company more for not doing anything.

Put it another way, a one time $1000 is not going to change your life. Definitely wont change your lifestyle. All this tax cut will do is further stratify US wealth distribution. ...in a bad way.

You know me, I am a pretty big capitalist myself, but companies need to just own it. Don't insult the peoples collective intelligence by patting yourself on the back for a token.

Wait, what did I just say?

What world do you live in where $125,000,000 is a token. They didn't have to even do that if they didn't want too. That $1000.00 is going to affect them more then you think. I don't know what you make, but, at the rate of pay they have the tax liability is quite small. It will buy a lot of things otherwise unavailable to them. There should be at least a little appreciation considering there was no requirement to do it. Go overboard and see if it will ever happen again. No one was owed it... it is a gift no matter how wealthy TWDC appears to be to you.

 

[POLY LOVER]

If I win the lottery, my kids might not even get $1000. What is with the entitlement mentality?

Disney has a business to run. This isn't a lottery effect. They are in a viciously competitive environment and again, do not make insane margins. It would only take a couple bad quarters to really test Disney's financial viability. It's a constant fight. 3 of their 4 businesses are in decline.

I think $1,000 is a nice gesture to their employees. They aren't going to take the $1.6B tax savings and divide it by the number of employees and continue it every year. This isn't communism. It's capitalism.

No one knows how the tax law will affect the economy. It's too hard to know. History will tell us.

If everyone gets richer, it's a positive. Don't confuse wealthy getting richer at a faster rate with failure. That's just how finance works. 10% for us isn't the same as 10% for Warren Buffett.

Saying you'd rather have nothing is just letting petty pride get in the way. I'll take a $1,000 any day of the week.

Do you really think that people making 9.00 and 10.00 an hour are being greedy, acting entitled? this company isn't selling 89 cent hamburgers, they sell high priced everything and pay basically nothing. They pay the same as a McDonald's. Yes they have a business to run and people have lives to live. Most CM's couldn't afford one night at the wilderness lodge on what they make a week. Even Henry ford was smart enough to pay his people enough that they could actually buy the product they made.

 

[POLY LOVER]

What world do you live in where $125,000,000 is a token. They didn't have to even do that if they didn't want too. That $1000.00 is going to affect them more then you think. I don't know what you make, but, at the rate of pay they have the tax liability is quite small. It will buy a lot of things otherwise unavailable to them. There should be at least a little appreciation considering there was no requirement to do it. Go overboard and see if it will ever happen again. No one was owed it... it is a gift no matter how wealthy TWDC appears to be to you.

Don't forget any declared bonus is a write off also. They charge it off their earnings.

 

[rk03221]

They pay their employees and treat them better at wal mart than disney, thats pretty sad. I knew quite a few CMs at WDW while I worked there with families living in motels/hotels. Its not the companies responsibility to provide them a home but they do set the standard for central FL, and since most jobs here are service industry jobs companies base their pay off of what disney pays more or less. The company should at least have a decent raise system or something to make up for it, I dont think the frontline CMs should be getting $15 an hour but I think $12-13 an hour is fair.

 

[Chef Mickey]

Do you really think that people making 9.00 and 10.00 an hour are being greedy, acting entitled? this company isn't selling 89 cent hamburgers, they sell high priced everything and pay basically nothing. They pay the same as a McDonald's. Yes they have a business to run and people have lives to live. Most CM's couldn't afford one night at the wilderness lodge on what they make a week. Even Henry ford was smart enough to pay his people enough that they could actually buy the product they made.

There is no point explaining business to you.

But would your mind be blown if I told you McDonald’s has better operating margins overall than Disney?

 

[Goofyernmost]

Don't forget any declared bonus is a write off also. They charge it off their earnings.

Yes, and we have had this discussion already on another thread. It is a real, but, irrelevant concern. It is made up for by the fact that they also have to pay matching funds in SS, so whatever gain is made by the charge off as expense, is pretty much taken away by that little detail. Bonus's are taxable income and thus subject to the laws that govern it the same as regular hourly income.

 

[John park hopper]

I am curious to know how many people think a cast member job is a career path job that one would do until retirement age (SS-65). I would venture to say most are high school graduates (limited education or job skills) or college interns working for experience (who I have spoken to on my WDW visits) or someone who is retired. If the pay does not suit you look for a better job or gain job skills that are marketable. I can remember working and getting an unexpected bonus of $1000 and never thinking it was a slap in the face. Even after taxes and SS it was a clear $750 which the company did not have to do. Yes that's a couple of nights at the value resorts if that was my choice.

 

[Goofyernmost]

I am curious to know how many people think a cast member job is a career path job that one would do until retirement age (SS-65). I would venture to say most are high school graduates (limited education or job skills) or college interns working for experience (who I have spoken to on my WDW visits) or someone who is retired. If the pay does not suit you look for a better job or gain job skills that are marketable. I can remember working and getting an unexpected bonus of $1000 and never thinking it was a slap in the face. Even after taxes and SS it was a clear $750 which the company did not have to do. Yes that's a couple of nights at the value resorts if that was my choice.

And there is another huge incentive for getting a job at Disney, no matter how minor it might seem. The words Walt Disney Company is like a neon light on a resume. Spend a year there and you have job experience at a well known company that are not going to give out any negatives (only date of employment). It's like having Harvard or Yale in the education section.

And, give up, you will never convince some that people do not always start at the top of a company unless it was owned by their Father. And that they have to show their worth before they get paid for it. And the skill level required dictates how much pay one is worthy off. They can't afford housing, who can? Remember Friends? Chandler and Joey were roommates as well as Monica and Rachael! That's what you do when you are starting out and trying to make it. Or you stay home with Mom and Dad. Or you help your own cause by cutting back about 50% of the partying.

 

[21stamps]

What a crazy world we live in. Complaining about an unexpected bonus.

 

[CaptainAmerica]

Put it another way, a one time $1000 is not going to change your life. Definitely wont change your lifestyle. All this tax cut will do is further stratify US wealth distribution. ...in a bad way.

$1,000 changes a lot of people's lives. 57% of people, including 67% of millennials, have less than $1,000 in their savings account. Don't make the mistake of assuming that just because $1,000 wouldn't change YOUR life it wouldn't change anyone's.

 

[Chef Mickey]

$1,000 changes a lot of people's lives. 57% of people, including 67% of millennials, have less than $1,000 in their savings account. Don't make the mistake of assuming that just because $1,000 wouldn't change YOUR life it wouldn't change anyone's.

Such a great point.

 

[larandtra]

More of the big bad company making the poor little millenials have to work for a living. The shame of it. How could they just give everyone 1000 bucks. Thats nothing. It shouldve been 5000.
For the life of me Ill never understand the minimum wage should be 20$ an hour and we "deserve" crowd. They have absolutely no business acumen nor any sense of self reliance and responsibility. Simple answer..If you dont think you are making enough money...Go improve your skills or education, make youself more valuable, or find another job somewhere else where they will pay you to do nothing. Its a much larger picture than just that involving markets, labor unions, tariffs, governmental regulations, etc, but, in a microcosm, thats how I feel about things.