Disney (NYSE:DIS) may be cutting 6% of its workforce, but that hasn't stopped it from handing out massive pay raisesespecially at ESPN. The company has reportedly signed Stephen A. Smith to a five-year, $100 million contract, a huge jump from his previous $12 million per year deal.
Investors didn't take the news well, sending Disney shares slipping in Friday afternoon trading. The deal comes as ESPN struggles to maintain ratings, with Smith's show First Take being one of its few consistent winners. Smith, for his part, has been vocal about his worth, recently stating, I'm fully aware of what I'm worth and I will never apologize for that.
Meanwhile, Disney also approved a new contract for its recently unionized animation workers, giving production coordinators a 35% raise, supervisors a 29% bump, and managers a 24% increase. Employees also secured better pensions and health benefits.
While Smith's raise grabbed headlines, the broader question remainscan Disney afford big spending while cutting jobs elsewhere?
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