As the year ends, Netflix announced its compensation estimation for its top executives. Reed Hastings and Ted Sarandos, the company’s co-CEOs, are expected to receive $34.65 million and $40 million, respectively, in 2023, according to estimates of the remuneration Netflix would give its senior executives.
The compensation committee of the board of directors estimated 2022 in a filing with the SEC today. Hastings will receive a basic pay of $650,000 together with $34 million in stock options.
Sarandos will earn a $3 million salary, $20 million in options, and a bonus that is believed to be approximately $17 million.
Netflix is one of the very few firms that offer executive pay guidance instead of just disclosing data from the past year.
Greg Peters, the company’s COO and head of product, will make $24 million in 2023, which is the exact amount that was predicted last year.
He was indeed a key administrator of the company’s recent introduction of an ad-supported membership tier and entry into the video game business. His basic salary will make up $1.5 million of the amount, whereas options are valued at $10 million and incentives are valued at $10.5 million.
Peters and other executives were not expecting to get bonuses in 2022, according to the filing from the previous year.
“Awards under the plan will only be paid after achievement of specified performance goals,” this year’s filing notes. “The committee will be the administrator of the plan and will assign each participant a target award and performance goal or goals for a performance period set by the committee. The estimated target bonus amounts set out in the table above are estimates only, and any actual amounts that may be paid to the may differ based on factors adopted by the committee pursuant to the plan.”
Over the past year, Hastings, Sarandos & Co. has experienced a significant change in its workplace environment. The company’s superiority was proved by the success of shows like Squid Game around the world, which even prompted a sarcastic tweet from Amazon founder Jeff Bezos, as of 2022, when the stock was still valued above $600.
The firm would announce its first subscriber losses in more than a decade in the following months, together with poor guidance which represented the costs of intense competition. The co-CEOs started recruiting fewer people as the challenging year went on, and they eventually slowed up on content spending.
Netflix will still be the industry leader in terms of subscribers in 2023, but it will encounter many hurdles, such as password sharing, ads, and video games.
