Netflix CEO Pay Doubles, Reed Hastings Having A Good Year
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.