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Netflix plans to reintroduce bonuses for its top executives in 2023, which were suspended for the past few years. The streaming giant disclosed the salary packages set by its board in an SEC filing on December 23.
A report by Variety suggests that Netflix co-CEO and chief content officer Ted Sarandos’ pay package for next year will get a total potential payout of $ 40 million — which would match his 2022 compensation plan.
The co-CEO and chairman,Reed Hastings is also likely to receive a compensation package with a salary of $ 650,000 and stock options worth approximately $ 34 million.
Moneycontrol couldn’t independently verify the report.
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Sarandos’ salary will go from $ 20 million this year to $ 3 million in 2023; at the same time, the Netflix co-CEO will also become eligible for a new $ 17 million performance bonus next year. Additionally he is also going to receive $ 20 million worth of stock options.
Chief product officer, Greg Peters could receive up to $ 24 million ($ 1.5 million in salary, $ 12 million in stock options, and $ 10.5 million in estimated target bonus).
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Netflix’s board disclosed in its SEC filing that the streaming giant’s compensation committee adopted the following compensation program changes for 2023 for Reed Hastings, Ted Sarandos and Greg Peters, wherein a minimum 50% allocation of the officer’s allocatable compensation will be given through stock options, a salary cap of $ 3 million in the case of the co-CEOs and a cap of $ 1.5 million in the case of the COO has been introduced; and an annual performance-based cash bonus program has been introduced.
The compensation program’s terms will render Reed Hastings ineligible for the bonus program as his cash compensation is less than the $ 3 million salary cap, the filing stated.
The streaming giant mentioned in its filing that the awards will only be granted post the fulfillment of certain performance linked goals. “The Committee will be the administrator of the Plan and will assign each participant a target award and performance goal or goals for a performance period set by the Committee” , Netflix stated.
Netflix said in its filing that the estimated target bonus amounts for Sarandos and Peters “are estimates only, and any actual amounts that may be paid to the may differ based on factors adopted by the Committee pursuant to the Plan.”
The streaming giant also disclosed the compensation packages of its other top executives, CFO Spencer Neumann will receive $ 14 million ($ 7 million in salary and $ 7 million in stock options), chief legal officer David Hyman will get $ 11 million ($ 4 million salary, $ 7 million in stock) and chief communications officer Rachel Whetstone is to receive $ 6.5 million ($ 5.7 million salary, $ 800,000 in stock),according to the release.
