Netflix establishes 2023 executive pay, with stock-option requirements
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Netflix (NASDAQ:NFLX) has detailed 2023 pay plans for its key executives, and it's set salary caps and stock-option requirements for three key leaders.
In an SEC filing, the company said its Compensation Committee established plans for its named executives and noted that its execs are allocated an annual amount that they can then choose to allocate toward stock options or cash compensation.
For 2023, it's making changes for co-CEOs Reed Hastings and Ted Sarandos and Chief Operating Officer/Chief Product Officer Greg Peters: They'll be required to take at least 50% of their pay in stock options; Hastings and Sarandos will face a salary cap of $3M each, and Peters a cap of $1.5M; and they'll be part of an annual performance-based cash bonus program tied to specific goals.
The part of their allocatable compensation not allocated to stock options and in excess of their salary cap will be subject to the bonus program. That means Hastings won't participate in the bonus program as his cash compensation is less than the $3M cap.
Hastings is set to receive a 2023 salary of $650,000, with a stock option allocation of $34M and no estimated target bonus. In the case of Sarandos, he'll receive a salary of $3M, with a stock option allocation of $20M and an estimated target bonus of $17M.
Peters is set to receive a salary of $1.5M with a stock option allocation of $12M (estimated target bonus of $10.5M).
Chief Financial Officer Spencer Neumann will receive a salary of $7M and a stock option allocation of $7M; Chief Legal Officer David Hyman will get a salary of $4M and stock option allocation of $7M; and Chief Communications Officer Rachel Whetstone will receive a salary of $5.7M with a stock option allocation of $800,000.
Netflix (NFLX) is opening up the post-Christmas trading period down 3.7%, somewhat lower along with the rest of Nasdaq.