Netflix CEO Reed Hastings, Content Chief Ted Sarandos' Pay Rises in 2019

Netflix co-CEOs Ted Sarandos and Reed Hastings
Han Myung-Gu/WireImage

Netflix co-CEOs Ted Sarandos and Reed Hastings

Hastings' salary increased by 7 percent, with his right-hand man making 17 percent more.

Netflix CEO Reed Hastings' compensation reached $38.6 million, up about 7 percent compared with $36.1 million in 2018, the streaming video giant disclosed in a regulatory filing Wednesday.

He had made $24.4 million in 2017 and $23.2 million in 2016.

Chief content officer Ted Sarandos, meanwhile, got a compensation package worth $34.7 million, up 17 percent. That compared with $29.6 million in 2018, his 2017 pay of $22.4 million and his $18.9 million pay in 2016.

Hastings' salary remained unchanged at $700,000, but he got $37.4 million in stock options awards, up from $35.4 million in 2018. His "other" compensation amounted to $465,637 after zero in 2018 and 2017. That figure was all for the "personal use of company aircraft."

Sarandos' salary rose from $12 million to $18 million, while his options awards declined from $17.6 million to $16.6 million. His "other" compensation rose from $32,251 to $98,497, made up of a matching contribution made under the firm's 401(k) plan, $74,282 for personal use of company aircraft and $14,415 for car services.

New CFO Spencer Neumann made nearly $12 million in 2019, including a $1.7 million bonus.

At the end of each year, Netflix pre-announces top executives' salaries for the following year along with stock option allocation targets. Usually in April, it reports the final compensation figures, including other income, for the previous year.

At its annual shareholder meeting in June, Netflix said it would be "providing our stockholders with the opportunity to cast a nonbinding advisory vote on the compensation of our named executive officers," adding: "We currently hold our advisory say-on-pay every year. Shareholders will have an opportunity to cast an advisory vote on the frequency of say-on-pay votes at least every six years. We currently expect that the next advisory vote on the frequency of the say-on-pay votes will occur at the 2023 annual meeting of shareholders."

People watching more entertainment programming while sheltering at home propelled Netflix to a strong first three months of 2020, the company had announced Tuesday after the stock market close. The streaming giant added 15.8 million subscribers during the first quarter of the year, a period of record growth that rocketed its global user base to nearly 183 million.