In a symbolic rebuke of Netflix’s top executives, company shareholders voted against approving the compensation packages of leaders including co-CEOs Ted Sarandos and Greg Peters.
At the streamer’s June 1 annual shareholders meeting, investors withheld support for the exec pay packages for 2023. But the vote was a non-binding “say on pay” measure, meaning Netflix’s board can disregard the result.
The vote came after the WGA had urged investors to vote against Netflix’s exec compensation measures. “While investors have long taken issue with Netflix’s executive pay, the compensation structure is more egregious against the backdrop of the strike,” WGA West president Meredith Stiehm wrote in a letter to Netflix shareholders. WGA sent a similar letter Comcast investors, whose 2023 shareholder meeting is slated for June 7.
In 2023, Sarandos’ pay package will be up to $40 million (which would match his 2022 compensation plan), comprising $3 million in base salary, a $17 million performance bonus and $20 million worth of stock options. Peters, who was named Netflix co-CEO in January after Reed Hastings stepped down from the role, is set to receive as much as $34.65 million as co-CEO ($3 million annual salary, $17.325 million in options and a $14.325 million performance-based target bonus).
In addition Netflix CFO Spencer Neumann this year 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).
Last year, Netflix’s executive compensation plans received 27% of the shareholder votes cast.