Jon Heely, the director of music publishing at Disney, was arrested and charged with three counts of lewd and lascivious acts on a child.
The 58-year-old, who was arrested on November 16 and released six days later on USD 150,000 bail, is accused of abusing two underage girls about a decade ago, reported Variety.
He allegedly victimised the first girl when she was 15. According to the charges, he began abusing the second when she was about 11 years old and continued until she was 15.
In a statement, a Disney spokesman said the company suspended Heely on Friday, after being informed of the charges.
"Immediately upon learning of this situation tonight, he has been suspended without pay until the matter is resolved by the courts," the spokesman said.
Heely pleaded not guilty at his arraignment at the San Fernando courthouse on Thursday. He is due back in court on January 10.
If convicted, he faces up to nine years and three months in prison.
Heely's attorney, Robert Helfend, denied the charges.
"He vehemently denies these allegations and we will be fighting until the end to clear his name. It's a shame, that's all I've got to say," Helfend said.
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