Netflix 2024 Pay Packages for Top Execs Revealed
Netflix’s board has approved the 2024 pay packages for its top executives, with co-CEOs Ted Sarandos and Greg Peters set to receive a compensation worth $40 million each. This amount represents the same level of pay for Sarandos as in 2023, while Peters is getting a 5% increase from his 2023 compensation of $34.65 million.
Reed Hastings, who stepped down as CEO earlier this year, will receive a compensation package of $1 million for 2024, down from $3 million in 2023. Prior to stepping down, Hastings’ pay target for 2023 was $34.7 million, mostly in stock.
In a filing with the Securities and Exchange Commission, Netflix disclosed that the board’s compensation committee had made several key changes in how the 2024 pay packages are structured. Specifically, the committee decided to eliminate the program feature that allowed executive officers to choose how their compensation was allocated in terms of cash salary and stock options, in response to shareholder concerns that executives could choose all cash compensation.
The target pay packages for 2024 include annual base salaries of $3 million for the co-CEOs, $100,000 for Hastings as executive chairman, and $1.5 million for the other executive officers. In terms of stock-based compensation, the board committee approved grants of an equally weighted mix of time-based restricted stock unit awards and performance-based stock awards.
The breakdown of the 2024 pay packages for Sarandos and Peters includes a base salary of $3 million, target cash bonuses of $6 million, and stock worth $31 million. CFO Spencer Neumann is set to receive $15 million total ($1.5 million salary, $3 million bonus, $10.5 million in stock), while chief legal officer and secretary David Hyman will see $11 million ($1.5 million salary, $3 million bonus, $6.5 million in stock).
Overall, the 2024 pay packages for Netflix’s top executives show a mix of base salaries, cash bonuses, and stock-based compensation, with a focus on aligning executive compensation with the company’s performance.