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Netflix’s board of directors has approved the 2024 salaries of its top executives, with co-CEOs Ted Sarandos and Greg Peters each receiving compensation of $40 million.
For Sarandos, the maximum salary is $40 million that he is set to receive in the year 2023, while Peters is getting a 5% increase from his current $34.65 million. regarding awards for this year. Peters, formerly chief product officer and COO, was named co-CEO along with Sarandos in January of 2023.
Reed Hastings, who stepped down as CEO earlier this year, remains chairman. His compensation for 2024 is set at $1 million, down from $3 million in 2023. Before he stepped down as CEO, the Hastings’ salary is $34.7 million this year, mostly in stocks.
Netflix unveiled its premium box office pricing in a SEC filing Friday. According to the company, the compensation committee of the board made several important changes in the way the 2024 salary packages are structured.
First, while Netflix used to allow executive officers to decide how to combine their compensation in terms of cash payments and stock options, the compensation committee “decided to eliminate this special program to address the concerns of shareholders that the management can decide all compensation.” For 2024, the committee set annual base salaries at $3 million for the two co-CEOs, $100,000 for Hastings as chairman, and $1.5 million for other executives.
Second, with respect to stock-based awards, Netflix’s board of directors approved the grant of an “equally weighted mix” of restricted stock awards. while sales are limited by time and sales performance indicators. In general, the RSU will be issued quarterly over a three-year period, for the Netflix portfolio. A performance-based share will be awarded “up to 0% to 200% of the target number” of units based on the number of shareholders (TSR) of Netflix is relative to the TSR of companies in the S&P 500.
The combined 2024 salary packages for Sarandos and Peters are the same: Both are set to earn a base salary of $3 million; cash bonus of $6 million; and shares of $31 million. Hastings’ company breaks down like this: $100,000 salary; $200,000 bonus; and $700,000 on hand.
Also in the file, Netflix announced the 2024 salary package for the other two: CFO Spencer Neumann, who will receive $ 15 million in total ($ 1.5 million salary, $ 3 million bonus, $ 10.5 million per share), and David Hyman, the general counsel office and. secretary, who will see $11 million ($1.5 million salary, $3 million bonus, $6.5 million stock). That’s a slight increase for Neumann, whose 2023 salary was set at $14 million, and the same for Hyman.