Netflix‘s board has licensed 2024 pay applications of its most sensible pros, with co-CEOs Ted Sarandos and Greg Peters each and every to obtain repayment price $40 million.
For Sarandos, $40 million is similar stage of pay he’s set to obtain in 2023, whilst Peters is getting a 5% step-up from the $34.65 million in goal repayment for this yr. Peters, previously leader product officer and COO, used to be named co-CEO along Sarandos in January of 2023.
Reed Hastings, who stepped apart as CEO previous this yr, stays government chairman. His repayment bundle for 2024 is pegged at $1 million, down from $3 million in 2023. Sooner than he exited as CEO, Hastings’ pay goal have been $34.7 million this yr, most commonly in inventory.
Netflix disclosed the objective pay applications for most sensible pros in an SEC submitting Friday. The corporate stated the board’s repayment committee made a number of key adjustments in how the 2024 pay applications are structured.
First, whilst Netflix used to permit government officials to select how their repayment used to be allotted in the case of money wage and inventory choices, the repayment committee “decided to do away with this program characteristic to deal with shareholder issues that executives may make a choice all money repayment.” For 2024, the committee established annual base salaries at $3 million for the 2 co-CEOs, $100,000 for Hastings as government chairman, and $1.5 million for the opposite government officials.
2nd, in the case of stock-based repayment, the Netflix board committee licensed grants of “an similarly weighted combine” of time-based limited inventory unit awards and performance-based inventory awards. On the whole, the RSUs will vest quarterly over a three-year duration, consistent with Netflix’s submitting. The performance-based stocks will vest “as to 0% to 200% of the objective quantity” of devices relying on Netflix’s overall shareholder go back (TSR) relative to the TSR of the corporations within the S&P 500.
The composition of the 2024 pay applications for Sarandos and Peters are an identical: Each are set to obtain a base wage of $3 million; goal money bonuses of $6 million; and inventory price $31 million. Hastings’ comp breaks down like this: $100,000 wage; $200,000 bonus; and $700,000 in inventory.
Additionally within the submitting, Netflix disclosed 2024 goal pay applications for 2 different exes: CFO Spencer Neumann, who’s to obtain $15 million overall ($1.5 million wage, $3 million bonus, $10.5 million in inventory), and David Hyman, leader criminal officer and secretary, who will see $11 million ($1.5 million wage, $3 million bonus, $6.5 million in inventory). That’s a slight building up for Neumann, who 2023 pay used to be earmarked at $14 million, and the similar stage for Hyman.
