Netflix’s top executives saw a bump in pay in 2022 as the streamer’s stock fell more than 51% during the year following its first subscriber loss in over a decade.
According to a filing with the Securities and Exchange Commission on Friday, Netflix’s executive chairman and former co-CEO Reed Hastings raked in approximately $51.1 million in total compensation last year, up from the $40.8 million he received in 2021. Hastings’ package included a $650,000 base salary, approximately $49.4 million in stock options and $1 million in other compensation, including personal use of the company’s aircraft and $212 for car services.
Hastings’ co-CEO Ted Sarandos brought in approximately $50.3 million, compared to his $38.2 million package in 2021. The package was comprised of a $20 million base salary, $28.5 million in stock options and $1.8 million from other compensation, including $11,299 for car services, $336,148 for personal use of the company’s aircraft and $1,427,129 in residential security costs.
Greg Peters, the company’s former chief operating officer who succeeded Hastings as Netflix’s new co-CEO in January, received a total pay package of $28.1 million in 2022, compared to the $20.37 million package in 2021. The 2022 compensation was comprised of a $16 million base salary, $11.5 million in stock options and $617,263 in other compensation, including $510,375 for personal use of the company’s aircraft, $1,579 for car services, $49,864 in tax penalties arising from Peters’ prior expatriate assignment and $55,445 in related tax gross-up.
In response to shareholder feedback, Netflix’s board of directors has adopted changes to its executive compensation program for 2023. The changes include a minimum 50% allocation to stock options, a $3 million salary cap, an annual performance-based cash bonus program and a one-year vesting period for stock options.
“The Compensation Committee believes these changes to our compensation structure align with stockholder interests and incentivize the co-Chief Executive Officers to execute on strategies aimed at achieving long-term success, while also maintaining aspects of our compensation program that we believe have helped attract and retain top talent to support our growth,” the company noted in the filing.
In 2023, Sarandos and Peters will each receive a $3 million base salary, according to the filing. Sarandos is allocating $20 million to stock options and has a $17 million estimated target bonus for 2023, while Peters is allocating $17.3 million to stock options and has a $14.3 million estimated target bonus. Meanwhile, Hastings will receive a $500,000 salary and is allocating $2.5 million toward stock options.
More to come…
