Walt Disney Phasing Out Executive Car Allowances
The entertainment giant is cutting perks as it continues to focus on boosting profitability.
The Walt Disney Co. is phasing out executive car allowances as the Hollywood conglomerate continues to focus on boosting its profitability.
“We’re phasing them out,” Bloomberg News quoted Disney CFO Jay Rasulo as saying on Thursday. He didn't specify how much money the initiative would save.
One mid-level former Disney executive told Bloomberg that his or her monthly car allowance amounted to $900 in recent years.
Rasulo's team has been reviewing expenses company-wide and looking to modernize operations. “We looked at the way technology is changing our businesses,” Rasulo told Bloomberg without going into details. “We’re removing vestigial parts.”
Disney chairman and CEO Robert Iger has made efficiency a continuing focus. The company has cut jobs, closed offices and outsourced work to boost its profitability, Bloomberg highlighted. Said Edward Jones analyst Robin Diedrich about Iger: “He’s wielding a scalpel, not a meat cleaver."
Other entertainment giants have, in recent years, also focused on streamlining operations in ways that go beyond job cuts. Time Warner, for example, has been looking at moving to a new Manhattan headquarters that would allow it to reduce its spending on office space.
Beyond the car perk, some units of Walt Disney have ended the practice of operating only half a day on Fridays during the summer, according to Bloomberg.
A Disney spokesman declined comment.