Netflix co-CEOs Reed Hastings and Ted Sarandos each have a small reduction in total compensation in 2021 compared to 2020, according to a new SEC filing.
The company’s preliminary proxy statement, filed Friday, said Hastings grossed $ 40.8 million last year, down from $ 43.2 million in 2020. Sarandos brought in $ 38.2 million, down from $ 39.3 million. In December last year, Netflix released executive compensation guidelines as usual. This prospect would have had to pay Hastings $ 34 million and Sarandos $ 40 million.
The co-executives of the company have different payroll structures. Sarandos made $ 20 million last year, with most of his payout in the form of options awards. Hastings, who co-founded the company, received a salary of $ 650,000, a premium option of over $ 37 million.
Chief Product Officer Greg Peters was Netflix’s next highest-paid executive, even though his share dropped about $ 400,000 to nearly $ 20.4 million.
Netflix’s share price, which helps determine the value of executive compensation packages, has fallen recently. Last January, when the company announced a soft underwriter prospect, the stock fell more than 20%, shattering all of its earnings during Covid. They closed today at $ 355.88, down nearly 2%.
In addition to executive compensation, the proxy statement states that the company’s annual shareholders’ meeting will be held on June 2.
Among the items on the agenda will be the election of board members, including former Netflix chief marketing officer Leslie Kilgore and former Pixar chief financial officer Ann Meter.
Shareholders will also have to vote on several proposals from management and shareholders, including one made by the company to declassify its board. The repeal of the current rules, which divide board members into three classes and provide for a staggered three-year term, will result in the election of all directors each year for a one-year term. The proxy statement stated that the secrecy was in line with Netflix’s “most standard large capital management structure.”
Source: Deadline
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