Netflix sets 2024 pay packages worth $40 million each for co-CEOs Ted Sarandos and Greg Peters

Netflix announced today that it plans to give its co-chief operating officers identical compensation packages worth $40 million each through 2024.

Ted Sarandos and Greg Peters receive a base salary of $3 million; a target bonus of $6 million; An RSU award worth a total of $15.5 million and a PSU award also worth $15 million. The RSUs are temporary stock units. PSUs are performance-based limited storage units. Netflix calls the packages “Total Goal Compensation.”

The figures in an SEC filing reflect changes in the way Netflix pays its top executives. First, the board no longer gives managers the choice of whether they prefer to be paid in cash or shares. “Historically, managers have been allowed to grant cash salaries and stock options. “The Committee decided to eliminate this program feature to address shareholder concerns that executives may elect to receive all cash compensation,” the Compensation Committee said.

In recent years, Sarandos has decided to withdraw very large portions of his salary in cash.

Netflix is ​​the only company among most companies that expects the reward for the next year and calls the packages a total target compensation. The figure for Hastings, now chairman, is $1 million. Chief Financial Officer Spencer Neumann stands at $15 million; Chief Legal Officer David Hyman for $11 million.

Compensation numbers for companies in a calendar year are not officially reported for the previous year until proxy season in the spring.

Netflix said a year ago that then-co-CEO Reed Hastings would get a $34.6 million package in 2023 and Sarandos a $40 million package. Hastings resigned in January and Peters became co-CEO.

Hastings and Sarandos received packages worth $50 million each for 2022 — an increase for both from last year. Sarandos received a base salary of $20 million that year. Netflix said another change is that it is now setting fixed base salaries of $3 million for the co-CEOs; $100,000 for the executive chairman (Reed Hastings) and $1.5 million for the other officers.

Mediabase’s salaries have always been high and have been the focus during actor and writer strikes. Netflix has seen shareholders vote against wages several times in recent years. Votes at the annual meeting called “say-on-pay” are non-binding.