[ad_1]
Getty Images
Netflix said today that it plans to give its chief operating officers the same cash for 2024 of about $ 40 million each.
Ted Sarandos and Greg Peters will receive a $3 million base salary; bonus of $6 million; an RSU award with a total value of $15.5 million and a PSU award with a total value of $15 million. RSUs are restricted units that expire over time. PSUs are restricted units based on performance. Netflix calls these packages total rewards.
The figures in an SEC filing reflect changes in how Netflix pays its chief executives. For one, the board is no longer allowed to decide whether they want to be paid in cash or stock. “Historically, Executive Officers have been allowed to combine compensation in cash and shares. The Board decided to eliminate this special program to address the concerns of shareholders that the management can decide all compensation funds,” said the compensation committee.
Sarandos has chosen to take large portions of her salary in cash in recent years.
Netflix is the only company with the most expected payouts for the next year, citing the amount of estimated compensation. The number for Hastings, who is now chairman, is $1 million. CFO Spencer Neumann at $15 million; attorney general David Hyman’s office for $11 million.
The award numbers for companies in a calendar year are not officially revealed for the previous year until the replacement season in the spring.
Last year, Netflix said CEO-CEO Reed Hastings would receive a package of $34.6 million in 2023, and Sarandos one $40 million. Hastings stepped down in January and Peters became chief executive.
Hastings and Sarandos were offered packages of more than $50 million each for 2022 — a two-fold increase from last year. Sarandos took home a base salary of $20 million that year. Netflix said that the next change is to set a fixed base salary of $3 million for CEO-CEO; $100,000 for the executive chair (Reed Hastings) and $1.5 million for his other CEOs.
The salaries of the Chief Advertising Officer are very high and he was front and center during the interviews with the journalists. Netflix has seen shareholders vote against pay several times in the past few years. Votes at the annual meeting are said to be non-binding.