Netflix in a regulatory filing on Monday, noted that the base pay of CEO Reed Hastings has been reduced. According to a report from Variety, the CEO’s salary is dropping from $3 million per year to $1 million. Just last year, the salary of co-founder Hastings was raised to $3 million from $2 million.
Compensated with stock options
Of note, the base pay of Chief Content Officer Ted Sarandos has also been reduced to $1 million. Just last year, Sarandos pay was increased to $2.8 million from $2.2 million.
Even though the base pay has been cut drastically, but both Netflix executives have an opportunity to earn way more than earlier in terms of total compensation. Both of them will receive annual stock option allowance of different amounts. While Hastings will receive $13.7 million in stock options, Sarandos will receive $9.6 million. The Monday filing also revealed that Sarandos could earn a bonus upto $2 million.
The 8-K filing had information about the pay of other executives as well, including the CFO David Wells. The Netflix CFO salary will amount to $2 million in 2015, and he will also receive a stock-option allowance of $1.675 million.
Pay details of other major Netflix executives
Other major names whose salary has been disclosed in the 8-K filing are Neil Hunt, Chief Product Officer at Netflix, and Chief of Netflix’s streaming and partnerships office, Greg Peters. The former is entitled to a salary of $1 million, stock options worth $1.87 million and a bonus of up to $5 million. Peters is entitled to a salary of $1 million and stock options worth $2.725 million. He also has the opportunity to earn a handsome amount of money in the form of bonus up to a maximum of $1 million.
2013 was a good one for the streaming company as it added millions more subscribers. However, in 2014 despite adding to the subscriber count, the company was unable to meet expectations, and this is reflected in the current stock price. The company’s shares have not performed well this year and are down 9% to date, compared to a 297% in 2013.