Six months after Netflix shareholders voted against a lucrative compensation plan for its executive, the streaming company revealed late Monday that it was establishing a plan for CEO Reed Hastings and other senior executives that is similar to the plan that was nixed in June.
Continue Reading Below
“The Compensation Committee of the Board of Directors ... has established the annual salaries and stock option allocation for 2020," according to an SEC 8-K filing. That plan gives CEO Reed Hastings only a $650,000 salary, but $34 million in stock options.
Netflix stock closed a little over 1 percent on Monday at $333.10.
Chief Content Officer Ted Saranados, who got his start in the video business in 1983 by managing eight retail video stores in the "Arizona Video Cassettes West" chain is in line for a $20 million dollar salary and 14.6 million in stock options. CFO Spencer Neumann is targeted for a $6 million salary and 5.5 million in stock options.
In June 158.66 million shareholders said no to the proposed plan while 158.46 million gave it a thumbs up — it was a difference of just 190,862 votes. But the vote was non-binding. A Netflix spokesperson told Variety at the time: “The Board will consider the results and act in what it believes to be the best interest of shareholders.”
The company will spend $15 billion on content this year as it faces a slew of new streaming competitors. While the company is profitable and increased revenue last year by 35 percent, it also had a free cash flow of negative $3 billion.