Netflix CEO Reed Hastings is getting a salary boost of 50% in 2014 to $6 million
Netflix co-founder and CEO Reed Hastings will see his compensation increase 50% in 2014 since the company’s stock price jumped to record levels this past year. Hastings will receive $3 million in annual salary and $3 million in yearly stock options. That is up from $2 million in salary and $2 million in stock options for 2013.
Yesterday, Hastings disclosed that he exercised options for 15,238 shares of Netflix stock on December 26th, which is worth $5.34 million. Several other Netflix executives are going to receive pay raises in 2014.
Netflix chief content officer Ted Sarandos will see his total compensation increase from $4 million to $5 million, including a $2.8 million base salary. Netflix CFO David Wells will see his compensation increase from $1.1 million to $1.5 million.
Netflix’s stock price almost tripled in 2013, going from around $92 in January to $366 on December 30th. Netflix announced on Monday that they have terminated their shareholder rights plan, which was a “poison pill” to prevent a hostile takeover from Carl Icahn. Icahn bought almost a 10% stake from Netflix last year. He cut his holdings in half after the stock price increased. Netflix ended the shareholder rights plan two years before it was supposed to expire.
[Source: Variety]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry