Robert Reich Takes On Disney CEO Bob Iger Over Hollywood Strike Remarks: 'CEOs…Raking In Millions Off Of Workers' Labor'

Former Secretary of Labor, Robert Reich, has seemingly directed his attention toward Bob Iger, CEO of The Walt Disney Co DIS, in the midst of the ongoing strike in Hollywood. On Friday, Reich urged people not to fall for the illusion of scarcity.

“CEOs keep pretending they can’t afford to pay workers fairly while they themselves are raking in millions off of workers’ labor,” Reich said.

After the Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA) failed to reach a deal with producers on pay and impact of artificial intelligence on film studios and streaming services, a double-strike commenced on Friday. This is the first time in over six decades that Hollywood is witnessing a double strike from both actors and writers.

Why It Matters: Reich targeted Iger after the Mouse House CEO, in an interview with CNBC on Thursday morning, said it was the worst time in the world to add to the disruption persistent in the business. The unions are not being realistic with their expectations, he added.

Meanwhile, earlier this week, the Walt Disney board extended Iger’s contract through 2026. As per the fresh contract, Iger has the opportunity to receive an annual incentive bonus of five times his base salary. Under his previous contract, the CEO was entitled to about $27 million/ year in total compensation, Reuters reported.

As the dual strike unfolds, Hollywood faces an alarming threat of stagnation. They have already slowed down significantly since the writers’ strike started in May.

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