Netflix Shareholders Reject Plan to Split CEO and Board Chairman Roles

1:13 PM PST 06/09/2014 by Paul Bond
Reed Hastings

The company's shares were up 300 percent in 2013 so investors weren't inclined to rock the boat.

Netflix shareholders voted Monday to reject a nonbinding resolution to split the roles of CEO and board chairman, both of which are filled by Reed Hastings.

The proposal was supported by pension funds and some others, but it was not expected to pass, given that Netflix shares soared nearly 300 percent in 2013 and investors weren't inclined to penalize Hastings after such an accomplishment.

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The proposal was rejected during Monday's shareholder meeting. A year ago, a similar nonbinding proposal passed but Netflix management basically ignored it. Netflix hasn't disclosed the final tally, but preliminary reports suggest about 53 percent voted against the proposal while a year ago only 27 percent voted it down.

New York City Comptroller Scott Stringer was one of the proposal's biggest advocates. Prior to Monday's vote, Stringer slipped in a mention of one of Netflix's most popular original shows when he told the New York Times that "a board that ignores its shareholders is a house of cards."

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