Reed Hastings saw his total compensation package increase by about $10 million to $51 million in 2022 due to a new stock option grant. Co-CEO Ted Sarandos earned $50.3 million in total compensation versus $38.2 million, also on a major options exchange.
The streaming company said in SEC filings Friday that Hastings earned a base salary of $650,000, with most of his $49.4 million package being option awards. Sarandos had a base salary of $20 million, with option awards of $28.5 million.
Unusually for large public companies, Netflix lets executives choose whether they’d rather be paid in cash or stock options. Sarandos has always taken a very large part of the money. Options can be considered risky as they usually settle over time and their value can change depending on the stock price. Netflix has clashed with shareholders over executive pay in recent years.
Hastings and Sarandos were co-CEOs last year. In January, Netflix co-founder Hastings assumed the role of Executive Chairman. Sarandos and former COO and Chief Product Officer Greg Peters are now co-CEOs.
The figures were revealed in Netflix’s annual proxy statement, which details the pay packages for the five highest-paid executives.
Peters earned $16 million in base salary, $11.5 million in option awards and $28 million in other compensation last year. CFO Spencer Neumann’s package included a base salary of $7 million and $10 million in options for $17 million.
The Trustee said that in determining Hastings’ compensation, the Board’s Compensation Committee “considered his achievements in developing and advancing the business strategy for the Company, the Company’s performance in relation to that strategy and his ability to attract and retain, recognize.”
Sarandos, the filing said, “considered his role as co-chief executive officer in addition to his role as chief content officer … competitive market compensation paid by other comparable companies, his global status as a leading media executive and his role in sourcing globally relevant content for the company’s international expansion are key contributors to the company’s original content strategy and market demand for high-caliber content programming talent.”
Netflix will hold its annual shareholder meeting on June 8.
Source: Deadline
Elizabeth Cabrera is an author and journalist who writes for The Fashion Vibes. With a talent for staying up-to-date on the latest news and trends, Elizabeth is dedicated to delivering informative and engaging articles that keep readers informed on the latest developments.
