Netflix mentioned it’s engaged on modifications to CEO pay insurance policies after a majority of shareholder voting to not approve government compensation in a non-binding vote on the final annual assembly.
“We acknowledge we don’t have extensive help for our government compensation mannequin of the final 20 years. We’re listening to our shareholders and plan on substantial adjustments for 2024 to a extra standard mannequin. Our government compensation plan will proceed to be constructed on pay for efficiency,” the corporate famous in its annual shareholder letter.
Netflix has constantly tangled with shareholders over CEO pay.
For 2022, Netflix co-CEOs final 12 months — then Reed Hastings and Ted Sarandos, topped the record of chief government pay, with about $50 million every, up 25% and 32%, respectively. Hastings segued to government chairman early this 12 months with Sarandos and Greg Peters now co-CEOs. Netflix has famously allowed executives to decide on how they need to be paid, in money or inventory. Sarandos has tended to take money, and noticed a $20 million base wage. (Hastings took virtually all of his pay final 12 months in inventory choices as he normally does.)
Nudged by shareholders, the corporate mentioned then it ha been reexamining its pay insurance policies. Beginning in 2023, it mentioned, it is going to cap co-CEO base wage at $3 million and require that fifty% of allocatable pay be in inventory choices — though solely with a one-year vesting interval so not notably long-term.
Extra to return…
