Netflix Boosts Reed Hastings' Stock Options Allowance, Ted Sarandos' Target Bonus
The changes continue compensation trends at the streaming video giant in recent years.
Netflix on Thursday disclosed the planned 2017 compensation packages for CEO Reed Hastings and chief content officer Ted Sarandos, among others.
The changes continue compensation trends at the streaming video giant in recent years, including more stock options for Hastings and a higher target bonus for Sarandos.
Hastings is scheduled to make a salary of $850,000 in the new year, down from $900,000 in 2016, with a stock option allowance of as much as $21.2 million, up from $19.0 million, according to a regulatory filing on Thursday.
He is again not scheduled to get a bonus. For the last few years, Hastings has taken a cut in his base salary and made up for that in stock options. His base salary dropped from $3 million to $1 million in 2015 and fell to $900,000 in 2016. Hastings' 2017 compensation is set to amount to more than $22 million overall, up from $19.9 million in 2016.
Sarandos, meanwhile, will see his base salary in 2017 remain at $1 million, just like in 2016 and 2015. His stock option allowance for the new year drops to $11.0 million from $11.8 million, but his target bonus jumps from $4 million to $9 million. Overall, he could make $21 million, up from $16.8 million.
Netflix has had a bumpy 2016. Following a global launch in January that boosted its subscriber numbers, the streaming video giant then saw a slowdown in membership additions following a price increase. But Netflix is on track to end the year on an upswing, even if the gains aren't as great as they were last year.
At the end of the third quarter, Netflix had 86.7 million subscribers worldwide. Going into the week, its stock was up nearly 13 percent for the year after a gain of 140 percent in 2015.