Netflix Sets Reed Hastings, Ted Sarandos’ 2022 Pay – $34M And $40M
Netflix said the compensation committee of its board of directors has set the annual salaries and stock option allocations for 2022 for co-CEOs Reed Hastings and Ted Sarandos. They amount to, respectively, $34 million and $40 million.
Netflix is one of the few companies that pre-announces anticipated compensation for its top executives. High executive pay has become a hot-button issue for shareholders of media and entertainment companies in recent years, including Netflix.
Salaries of publicly traded companies’ top five highest-paid execs are disclosed in annual SEC proxy statements. They come out in the spring for companies like Netflix that operate on a regular calendar year. But Netflix is one of the few that pre-announces numbers and the stock options its grants are awarded fully vested on a monthly basis throughout the year. The 2022 grants will start in January.
Netflix said Hastings’ 2022 package includes $650,00 in salary and $34 million in an annual stock option allocation. Sarandos, the chief content officer who was named co-CEO in the summer of 202, is taking an even split of $20 million in salary and $20 million in stock, according to an SEC filing.
For 2021, Hastings, who is Netflix founder and chairman, is set to receive $34 million worth of stock options and a salary of $650,000. Sarandos will receive options worth $14 million and a $20 million annual salary. The total compensation is for both would be about flat from 2020.
Hastings and Ted Sarandos earned, respectively, $43.2 million and $39.3 million in 2020. Hastings base salary was $650,000 with the bulk of his compensation as per usual from a grant of options, valued at $42.4 million, according to a proxy statement filed with the SEC. Sarandos received a base salary of $20 million and an option grant worth $18.3 million.