Dec. 28 (Bloomberg) -- Netflix Inc., the world’s largest video-subscription service, doubled the annual compensation of Chairman and Chief Executive Officer Reed Hastings to $4 million.
Hastings, 52, will receive $2 million in salary in 2013, along with $2 million in stock options, according to a regulatory filing today by the Los Gatos, California-based company. The executive received a $500,000 salary this year and $1.5 million in option allowances, a reduction in stock compensation from 2011.
Netflix has risen 29 percent in 2012, with one trading day left in the year. The shares peaked at $298.73 in July 2011 before sliding on investor concern over looming competition, a series of marketing missteps, losses overseas and fewer than expected new subscribers this year. The service suffered a disruption on Christmas Eve.
Third-quarter net income fell 88 percent to $7.68 million, or 13 cents a share, from $62.5 million, or $1.16, a year earlier, as the company bore costs to pursue expansion outside the U.S., according to an October report. Analysts had forecast profit of 5 cents, the average of 29 estimates.
Sales rose 10 percent to $905.1 million from a year earlier, beating the $904.9 million average of 29 estimates.
Netflix fell 1.3 percent to $89.33 at the close in New York.
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