Netflix shareholders back striking writers and reject executive pay

Netflix shareholders rejected the corporate’s pay packages for prime executives in a uncommon transfer on Thursday after putting Hollywood writers urged them to vote in opposition to the plans.

Netflix held its annual shareholder assembly on June 1, throughout which a non-binding “say on pay” vote was held, which sought approval for enormous pay choices for prime executives together with co-CEO Ted Sarandos, new co-CEO Greg Peters, and government chairman and former CEO Reed Hastings.

Sarandos and Peters will every be paid annual salaries of $3 million by Netflix this yr, Selection reported. Sarandos can even be paid $20 million in inventory, and has the potential to earn a bonus price as much as $17 million. Peters will obtain $17.3 million in inventory in addition to as much as $14.3 million in bonuses.

Hastings, in the meantime, will reportedly be paid a $500,000 wage and $2.5 million in inventory this yr after giving up the highest job.

Shareholders withheld help for the 2023 government compensation packages, nonetheless, backing calls from putting writers to vote down the proposals.

It isn’t but clear how a lot the vote failed by, with the ultimate tally to be included in an upcoming SEC submitting.

The consequence got here simply days after WGA West president Meredith Stiehm wrote an open letter to Netflix shareholders to induce they vote in opposition to the looming “say on pay” vote. She argued that approving the manager pay offers could be inappropriate in mild of the continuing scenario.

“Whereas buyers have lengthy taken subject with Netflix’s government pay, the compensation construction is extra egregious in opposition to the backdrop of the strike,” she wrote.  

“Shareholders ought to ship a message to Netflix that if the corporate might afford to spend $166 million on government compensation final yr, it may afford to pay the estimated $68 million per yr that writers are asking for in contract enhancements and put an finish to the disruptive strike,” she added, whereas noting that the corporate’s content material pipeline was blocked till negotiations with the WGA have been settled.

Stiehm additionally wrote the same letter to shareholders of Comcast, the dad or mum firm of NBCUniversal. Comcast is scheduled to carry its personal shareholder assembly on June 7.

Spokespeople for Netflix and the WGA weren’t instantly obtainable for remark when contacted by Fortune.

Members of the Writers Guild of America, who write and produce a few of the world’s greatest motion pictures and tv exhibits, have been on strike for 5 weeks over pay and streaming providers’ use of smaller writing staffs.  

Even earlier than the writers’ strike, Netflix was struggling to safe approval for enormous compensation offers it wished to supply its senior leaders.

Finally yr’s shareholder assembly, solely 27% of shareholders backed Netflix’s government compensation plan. Prime executives on the agency noticed their compensation bounce in 2022 from a yr earlier.

Comparatively, in 2021, greater than half of shareholders authorized the offers supplied to prime government officers at Netflix.

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