Netflix CEO Hastings’ Yearly Stock Option Allowance Cut 50%
Netflix CEO Hastings’ Stock Options Cut by 50%
David Paul Morris/Bloomberg
Reed Hastings, president and chief executive officer of Netflix Inc., speaks during the President's Council on Jobs and Competitiveness session in Palo Alto.
Reed Hastings, president and chief executive officer of Netflix Inc., speaks during the President's Council on Jobs and Competitiveness session in Palo Alto. Photographer: David Paul Morris/Bloomberg
Netflix Inc. (NFLX), the online and mail- order video service predicting losses for next year, cut the annual stock-option allowance for Chief Executive Officer Reed Hastings by half to $1.5 million.
Hastings will receive a salary of $500,000 for 2012, unchanged from this year, according to a regulatory filing today. His annual stock option allowance for 2011 was $3 million, according to a filing a year ago.
Netflix shares have dropped 75 percent from their all-time closing high of $298.73 set on July 13 as the company battled a subscriber revolt over price increases and other changes to its mail-order and streaming services. In October, Netflix projected losses in 2012 as it expands to the U.K.
Annual pay for Leslie Kilgore, chief marketing officer, will be cut to $575,000 from $802,000 in 2011, according to the filings. Kilgore’s option grant was increased to $1.33 million from $1.1 million. The 2012 salary for Neil Hunt, chief product officer, will be unchanged at $1 million and the option allowance will increase to $1.5 million from $900,000.
“We don’t comment on board decisions or executive compensation,” said Steve Swasey, a Netflix spokesman.
Netflix, based in Los Gatos, California, rose 4 percent to $73.84 at the close in New York. The shares have lost 58 percent this year.
Ted Sarandos, chief content officer, will receive $1 million in salary and $1.8 million in option allowances, compared with $903,362 and $1.4 million, respectively, last year, according to the filings.
To contact the reporter on this story: Rob Golum in Los Angeles at rgolum@bloomberg.net
To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net
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