Disney is shaking up its employee benefits by launching a stock purchase program and switching up its health insurance plans.
Eric Chaisson, Disney’s EVP of total rewards and employee services, told US-based employees about the changes in a Wednesday memo.
“We’re planning to introduce an Employee Stock Purchase Plan later in 2027, pending approvals, giving eligible employees the opportunity to build company ownership by purchasing Disney stock,” Chaisson said in an email, which was viewed by Business Insider.
Details of the stock purchase plan “are still being finalized,” Chaisson said, including who’s eligible and how the program will be designed.
The new stock program could be a way for Disney to encourage retention and boost morale after multiple rounds of layoffs this year. It could also help Disney staffers make more money without the company giving raises. However, Disney employees won’t strike it rich if the stock continues to underperform the market.
CEO Josh D’Amaro’s company had a major round of cuts in April and reduced stock-based compensation for some tech staffers shortly after. Disney’s ESPN let go of additional staffers in July, and some staffers in other parts of the company, including Pixar, were also affected.
Two software engineers previously told Business Insider that their long-term incentive awards, which are restricted stock units vesting every six months for three years, were cut from 35% of their base salary to 25%.
Disney is also changing “most medical plans” next year, Chaisson said, which will affect employee contributions. However, Disney isn’t switching health insurers, a person familiar with the updates said.
“Unlike in past years, your current coverage will not automatically roll over: nearly all employees will need to actively choose their plans and re-enroll any dependents for 2027,” Chaisson said. He added that Disney is “encouraging everyone to take a fresh look at their options and choose what works best for them and their families.”
When asked for comment, Disney spokesperson said: “Like a growing number of large employers, we’re making measured adjustments to our employee benefits in response to rising healthcare costs nationwide.”
The spokesperson said Disney would share more details about these changes with staffers in the coming months and said the company is “committed to providing our employees with a comprehensive package of high-quality coverage and other benefits that support their total health and well-being.”
Businesses across the US are grappling with surging healthcare costs. Employers’ healthcare expenses are expected to rise 9.5% next year, insurance brokerage giant Aon said on Thursday.
Disney is also “evolving” well-being programs and consolidating some “to create a more consistent and streamlined experience,” Chaisson said. He added that the company is doubling the number of counseling sessions available in its Employee Assistance Program.
Disney at a discount
Disney’s stock purchase plan announcement comes amid a yearslong share slump. Shares are up over 15% from their late-July low but are down 8% in the past year and 38% in the last five years.
Stock purchase programs let employees buy their firm’s shares at a discount, usually about 15% below the market rate, said Josh Bersin, who runs the HR consulting firm The Josh Bersin Company.
That contrasts with stock-based compensation programs, which give eligible employees shares at no charge. Employees must stay at the company for a certain amount of time to collect their shares.
Stock-based compensation can be a highly effective retention tool, especially for staffers at hot companies like OpenAI or Anthropic, Bersin said. But when a stock doesn’t move much, like in Disney’s case, employees with unvested shares might be less reluctant to leave.
Letting employees buy shares at a discount can be “a better way of managing benefits when the stock is not going up a lot,” Bersin said, since they’ll profit unless shares tank more than the employee discount.
“They end up with employees who are more committed and feel like owners,” Bersin said.
Bill Castellano, a professor of human resource management at Rutgers University, said that an employee stock purchase plan is “much broader based” than stock-based compensation, which is usually reserved for managers or high-ranking staffers.
This new program could be a way for Disney to extend an olive branch to employees and boost morale, given that its April move to cut stock-based compensation “can send a pretty negative signal,” Castellano said.
One Disney software engineer said they were “totally stoked” to join the stock purchase program.
Another software engineer was less enthused, saying their level of interest would depend on the program’s terms.
Shares acquired through these programs would be taxed at the same rate as ordinary income unless they were held for more than a year.
“The tax complexity is such that it would be beneficial to someone who holds and feels the company is a long-term prospect for growth,” the second software engineer said. “It doesn’t seem like an easy win.”
