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Netflix shareholders voted Thursday to reject a hefty compensation package for company executives, including co-CEOs Ted Sarandos and Greg Peters. This vote is non-binding and may be overturned by the Board at its next meeting.
But the result was notable just days after the Writers Guild of America, which represents striking writers, sent an open letter asking the streaming giant’s shareholders to reject the compensation plan.
Sarandos’ proposed 2023 salary package is worth up to $40 million, including base salary, performance bonuses and stock options. Peters, who was named co-CEO in January following the resignation of Reed Hastings, will receive up to $34.6 million. As executive chairman, Hastings is expected to earn $3 million a year.
Why it matters: Impressive writers are particularly critical of Netflix.
Shareholders voted at the annual general meeting as the guild strike entered its fifth week. No public comments were made during the brief meeting. Earlier this week, Meredith Stim, president of the Western Chapter of the Writers Guild of America, wrote in a letter to shareholders: strike. “
She argued that if Netflix was going to pay management so much, it should also pay the writers what she said was worth it, which she estimated at $68 million a year. (Steem sent a similar letter to Comcast shareholders, who are scheduled to meet next week.)
Netflix was a major usher in the streaming era, transforming the entertainment industry, including its compensation structure. As a result, the number of TV shows and movies in production has skyrocketed, but writers say wages have stagnated and working conditions have worsened.
Background: Shareholders have voted against executive compensation packages in the past.
Shareholders also rejected a “say-on-pay” offer last year, according to Netflix’s proxy statement, so the company called 26 shareholders, representing 57% of its outstanding shares, in an additional conference call to discuss executive compensation. was invited to participate in At the time, the company had already made changes to its 2023 compensation program for its three executives, requiring each executive to have a partial salary cap of $3 million and a minimum of 50% of their compensation tied to stock options, and a performance Introduced a linked reward system. – Base cash bonus.
What’s next: A board meeting awaits.
Netflix declined to comment on when its board of directors will meet to discuss the compensation package. Meanwhile, the writers’ strike continues.
