The introduction to the hilarious monologue also noted President Donald Trump administration's recent decision to revoke federal protections for transgender students, reported Entertainment Weekly.
"We like to think of these awards as the ones without Mel Gibson," said Kroll of the "Hacksaw Ridge" director.
"People wondered: how long would it take Hollywood to forgive someone for anti-semitic, racist hate speech?," he added.
To which Mulaney, 34, answered, "Eight years! So look out for the 2024 Oscars, when the Jean Hersholt Humanitarian Award goes to Mr Steve Bannon."
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"The only reason he got that job is because he's so hot," continued Kroll, 38.
"He looks like if Nick Offerman drowned." Mulaney added of Bannon, "Oh, those chapped kneecaps!"
While taking aim at Trump's decision, Mulaney said, "Hey, Trump- you and Robert Durst are both rich sociopaths from New York real estate empires. Yet, somehow Robert Durst is more likable."
The two also poked fun at the nominated films.