Netflix Brass, Board Spend Millions Buying Back Company Stock3 Apr, 2012 By: Erik Gruenwedel
The typical Form 4 regulatory filing discloses a corporate executive cashing in or being awarded company shares as part of a previously approved stock-based compensation plan.
Fourteen Netflix executives and board members April 3 did the opposite. They bought shares totaling more than $2.9 million of the Los Gatos, Calif.-based subscription video-on-demand streaming pioneer — 20 days before Netflix reports first-quarter results.
A company periodically authorizes the repurchase of stock in a show of support to shareholders. Executive and board members will do the same, albeit at much lower levels.
Chief content officer Ted Sarandos bought 6,581 shares at $113.97 per share for a total of more than $750,000, according to a filing. On the low end was board member Ann Mather, who bought 307 shares for nearly $35,000.
Co-founder and CEO Reed Hastings spent $625,000 on shares while also depositing 15,000 shares into a family trust.
Hastings owns more than 1 million Netflix shares, exceeding $1.2 billion in valuation.