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Disney Removes Diversity From Criteria Determining Manager Pay, Latest DEI Overhaul Suggests Major Shift but Leaves Questions Unanswered

February 26, 2025  ·
  Marvin Montanaro
Bob Iger

Bob Iger via New York Times Events YouTube

Disney is making another round of changes to its diversity, equity, and inclusion (DEI) initiatives, stripping away some of the most controversial elements while maintaining a commitment to what it calls “company values.”

In an internal memo to employees on Tuesday, Chief Human Resources Officer Sonia Coleman announced that Disney would no longer use diversity as a factor in determining managerial compensation. Instead, leadership evaluations will now focus on how well managers uphold company values and incorporate different perspectives.

Cinderella Castle

Cinderella Castle in Walt Disney World at Dusk looking into Liberty Square – Photo Credit: M. Montanaro

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This latest move follows the quiet removal of the Reimagine Tomorrow initiative and the Stories Matter website—two of the most publicly scrutinized aspects of Disney’s DEI efforts. The company has also altered its internal employee resource groups and softened its language in content disclaimers on Disney+—all signs that Disney is trying to adjust its corporate image in response to mounting public and legal pressure.

Disney’s Strategic Retreat on DEI

For years, Disney embedded DEI into nearly every aspect of its corporate strategy, from hiring practices to executive bonuses. That stance has become increasingly difficult to maintain in the face of growing opposition.

The Reimagine Tomorrow program, which set specific demographic quotas for characters in Disney productions, drew sharp criticism and even legal action. Last year, the America First Legal Foundation filed a federal civil rights complaint against Disney, arguing that the initiative promoted hiring practices that could be considered discriminatory.

Bob Iger Chris Pratt

HOLLYWOOD, CALIFORNIA – APRIL 27: (L-R) The Walt Disney Company Chief Executive Officer Bob Iger and Chris Pratt attend the Guardians of the Galaxy Vol. 3 World Premiere at the Dolby Theatre in Hollywood, California on April 27, 2023. (Photo by Charley Gallay/Getty Images for Disney)

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Now, with shifting political and corporate landscapes, Disney is adjusting its strategy. The company’s latest moves mirror decisions by other major corporations like McDonald’s, Amazon, and Walmart, which have all rolled back DEI commitments as legal scrutiny increases under President Donald Trump’s administration.

While Disney isn’t abandoning DEI entirely, it is making those policies far less visible.

Consider the following key changes:

  • Managerial Compensation No Longer Tied to DEI: Previously, Disney’s Other Performance Factors (OPFs) included Diversity & Inclusion as a key metric for executive bonuses, alongside Synergy and Storytelling and Creativity. That factor has now been replaced with Talent Strategy, which sounds broader but still includes “incorporating different perspectives”—a sign that DEI hasn’t truly been removed, just repackaged.
  • Content Warnings Softened: Disney+ has quietly updated the phrasing of content advisories on classic films. Instead of stating that a movie “includes negative depictions and/or mistreatment of peoples or cultures,” the disclaimer now simply says the program “is presented as originally created and may contain stereotypes or negative depictions.” The wording change shifts the focus away from direct accusations against Disney’s past films.
  • Employee Groups Rebranded: Internal employee organizations previously called Business Employee Resource Groups (BERGs) have now been renamed Belonging Employee Resource Groups. The shift in terminology suggests a move away from business-driven identity-based initiatives and toward a more general workplace community-building effort.

A Tactical Move or a True Policy Shift?

Bob Iger has been working to repair Disney’s reputation after years of political entanglements damaged the company’s brand, though many accuse the Disney CEO of merely trying to hide things, saying one thing and doing another.

Iger has claimed that under his leadership Disney is distancing itself from the aggressive activism that put it in direct conflict with Florida Governor Ron DeSantis and other high-profile conservative figures.

Bob Iger

Bob Iger via New York Times Events YouTube

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Iger himself has stated:

“Our primary mission needs to be to entertain, and then through our entertainment to continue to have a positive impact on the world. I’m very serious about that. It should not be agenda-driven, it should be entertainment-driven.”

Of course, what Iger says and what he does are two very different matters.

The real question remains whether these shifts represent a genuine course correction or simply a strategy to make DEI less visible while continuing the same internal practices. Disney is no longer broadcasting its commitments in bold, highly publicized programs, but many of the same objectives appear to remain in place under new names and softer language.

What’s Next for Disney DEI?

While these moves indicate that Disney is paying close attention to political and legal pressure, it remains to be seen whether this is just a temporary retreat or a permanent shift. With the Trump administration increasing legal scrutiny on corporate DEI policies, companies like Disney must now navigate the balance between satisfying investors, avoiding lawsuits, and maintaining a fair corporate culture without alienating audiences.

Spaceship Earth in Epcot

Epcot Spaceship Earth Walt Disney World Orlando 2010. Photo Credit: chensiyuan, CC BY-SA 4.0 <https://creativecommons.org/licenses/by-sa/4.0>, via Wikimedia Commons

For now, Disney’s changes seem to be more about optics than outright policy reversals. By scrubbing the more controversial elements of its DEI initiatives and replacing them with vague, business-friendly language, Disney is attempting to sidestep the growing backlash without fully abandoning the principles that guided its previous approach. Whether this strategy will be enough to repair its standing with skeptical audiences remains to be seen.

Do you think Disney is making actual changes to its DEI initiatives? Sound off in the comments and let us know!

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Author: Marvin Montanaro
Marvin Montanaro is the Editor-in-Chief of That Park Place and a seasoned entertainment journalist with nearly two decades of experience across multiple digital media outlets and print publications. He joined That Park Place in 2024, bringing with him a passion for theme parks, pop culture, and film commentary. Based in Orlando, Florida, Marvin regularly visits Walt Disney World and Universal Orlando, offering firsthand reporting and analysis from the parks. He’s also the creative force behind The M4 Empire YouTube channel, bringing a critical eye toward the world of pop culture. Montanaro’s insights are rooted in years of real-world reporting and editorial leadership. He can be reached via email at mmontanaro@thatparkplace.com SOCIAL MEDIA: X: http://x.com/marvinmontanaro Instagram: https://www.instagram.com/marvinmontanaro Facebook: https://facebook.com/marvinmontanaro YouTube: http://YouTube.com/TheM4Empire Email: mmontanaro@thatparkplace.com