Reed Hastings: The New $6 Million ManNetflix CEO In Line For 50% 2014 Pay Hike Comprised Of $3 Million in Salary, $3 Million In Stock Option Allowances 12/31/2013 8:59 AM Eastern
Move over, Steve Austin, there’s another $6 million man in our midst.
Netflix CEO Reed Hastings is in line to come away with that much in 2014 thanks to a healthier compensation package comprised of $3 million in salary and another $3 million in annual stock option allowances, according to an 8-K document filed Monday by the video streaming giant.
Hastings’ 2014 package represents a 50% boost over the $2 million in salary and $2 million in annual stock options set aside for him in 2013, a year that saw Netflix’s stock price soar. Netflix shares, which ended 2012 at $92.59 per share, hit a high water mark of $389.16 in 2013. Netflix shares were down 51 cents (0.14%) to $366.99 each in early trading Tuesday.
Hastings isn’t the only top Netflix exec in line for a raise in 2014. Netflix Chief Content Officer Ted Sarandos is to receive an annual salary of $2.8 million and yearly stock options of $2.2 million in 2014, versus $2.2 million and $1.8 million in 2013. Chief Financial Officer David Wells will receive a 2014 salary of $950,000 along with $550,000 in annual stock options, compared to $770,000 and $330,000 this year. Meanwhile, Neil Hunt, Netflix’s chief product officer, is to receive $1.75 million in both salary and options in 2014, versus $1.75 million in salary and $1.25 million in options in 2013.
Netflix also disclosed Monday that Hastings secured a $5.3 million profit after exercising options for 15,238 shares on December 26.
Also on Monday, Netflix announced that it had terminated its “poison pill” shareholder rights plan designed to fend off a hostile takeover. Netflix put the plan into play last November after investor Carl Icahn acquired a 9.98% stake in Netflix. Icahn sold off a chunk of that stake in October, pocketing between $700 million to $800 million in the process, according to Reuters.