Netflix co-CEO Ted Sarandos predicted that his total compensation would decrease slightly from $50.29 million in 2022 to $49.8 million in 2023 as the company changed its executive compensation policy.
The compensation package includes a base salary of $3 million, option compensation of $28.3 million, non-equity incentive plan compensation of $16.5 million, and company matching contributions of $13,200 to the 401(k) plan and $55,913 for auto services. Included was $1.98 million in “other” compensation. , $620,013 for personal use of a company aircraft and $1.3 million for residential security. By comparison, Sarandos’ 2022 package included a base salary of $20 million, option compensation of $28.5 million and “other” compensation of $1.78 million.
Meanwhile, Netflix co-CEO Greg Peters, who was elevated to the role in January 2023 following the departure of Reed Hastings, will receive total annual compensation of $40.1 million, up from $28.1 million in 2022. His package includes a base salary of $2.89 million, option compensation of $22.67 million, non-equity incentive plan compensation of $13.9 million, and “other” compensation of $620,602.
Hastings, who serves as executive chairman, will receive total annual compensation of $11.2 million, down from $51 million in 2022. The package included a base salary of $510,962, $10.6 million in option compensation and $136,092 in “other” compensation.
The median annual salary for Netflix employees in 2023 was $200,761. The ratios of Sarandos’ and Peters’ compensation to the median employee were 248:1 and 204:1, respectively.
In response to shareholder backlash, Netflix decided to cap its CEO’s base salary at $3 million and mandate that 50% of his compensation be in stock options. Shareholders can object to executive compensation packages during non-binding “salary determination” votes at the company’s annual general meeting.
“At our 2023 Annual General Meeting, 28.7% of our voting shares approved the remuneration of our Named Executive Officers. Our Remuneration Committee will consider the results of these votes and continue to engage with shareholders to provide feedback. “We recognized the importance of seeking a deeper understanding of the concerns regarding our executive compensation program,” the company said in Thursday’s proxy filing.
“In our dialogue with shareholders before and after the 2023 Annual Meeting, shareholders appreciated the remuneration committee’s efforts to address shareholder concerns and ensured that the changes to the 2023 executive compensation program are positive. Despite this feedback, the second consecutive year of significantly lower pay voting results highlighted the continued dissatisfaction of many shareholders with elements of our executive compensation program. .”
Netflix’s 2024 Annual Meeting is scheduled for June 6th.
