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Netflix CEO Pay Doubles, Reed Hastings Having A Good Year

Netflix CEO Reed Hastings

Netflix CEO Reed Hastings’ pay has doubled for 2013, a seemingly positive sign after some major missteps last year.

News that Netflix CEO pay doubled was part of year-end disclosures made by the now-nearly ubiquitous streaming and film rental company, and executives with the widely-patronized service seem to be getting raises across the board.

Contra Costa Times reports that not only is the Netflix CEO’s pay rising, but several other higher-ups at the company as well. The paper explains:

“Netflix is also boosting the pay of its other top execs. CFO David Wells’ total pay will rise to $1.1 million from $1 million. Chief Product Officer Neil Hunt’s pay will jump to $3 million from $2.5 million. And Chief Content Officer Ted Sarandos will see his remuneration rise to $4 million from $2.8 million.”

The end of 2012 was far better for Netflix, as the company struggled to re-chart itself after a rough few months. A widely-panned subscriber cost increase set the company’s stock plummeting as many customers jumped ship, and then a planned expansion to other parts of the world outside the US foothold further sowed uncertainty among investors.

But as 2012 comes to a close, Netflix is posting earnings nearly 30 percent higher than earlier in the year, and the Netflix CEO’s pay has doubled from $2 million to $4 million, in cash and stock options.

The Huffington Post reports:

“Hastings’ total pay for 2012 was down 43 percent from $3.5 million in 2011, when some controversial decisions, including a steep price hike on subscriptions, sent the stock spiraling. It fell from a high above $300 to a low below $70 per share … This year, shares are up 29 percent, closing Friday at $89.33. Recovering from the missteps, the company expects to add around 5 million U.S. subscribers, to between 26.4 million and 27.1 million by the end of the year.”

While the Netflix CEO’s pay will jump in 2013, Hastings took a cut after the missteps at the company affected stock prices.

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Comments

7 Responses to “Netflix CEO Pay Doubles, Reed Hastings Having A Good Year”

  1. John Curley

    shouldn't you get a raise for doing a good job? Netflix is really lacking in the "Flix" department, now it's just TV and B movies. It used to at least have one or two good movies, but has gotten incredibly lame.

  2. Anonymous

    I cant afford Netflix. I didn't get a raise this year. Or the year before, or the year before…

  3. Anonymous

    All the Obaboon lemmings are so worried about how much the CEO of Netflix makes but totally ignore what their politicians are doing and getting. Obaboon has done a great job of leading the STUPID revolution and the Dumbing down of America, YAY Obaboon, YAY OBABOON, YAY Ohhhh…. Baaa…..Boon.

  4. James Johnson

    He also cashed out millions of dollars in stock before attempting to spin Netflix off into various divisions, cashing out with his board at more than $300 per share before devaluing the company to under $80 per share. The board walked away with hundreds of millions and could then buy back into that same stock they just sold for less than 25% of the value. Rip-off artists at their finest.