Reed Hastings Cashes $6 Million in Stock Options26 Feb, 2014 By: Erik Gruenwedel
By his own admission, Netflix co-founder and CEO Reed Hastings characterizes the company’s stock as being on something of a roller coaster ride.
“I was clearly right about the [stock’s] volatility,” Hastings said in Netflix’s Feb. 22 earnings interview. “I mean, we have been all over the map here.”
Luckily, Hastings has had a compass to navigate the extreme peaks and valleys of the SVOD service’s market capitalization in recent years. Indeed, the CEO knew well enough Feb. 25 to buy 15,238 stock options at $34.75 each, and then sell them for $435 each.
Hastings’ return was in excess of $6 million. Following the transaction, he owns more than 982,000 shares of Netflix common stock valued at more than $427 million.
Meanwhile, entering 2014, Hastings saw his base pay increase to $3 million from $2 million, and his annual stock option allowance increase 50% to $3 million, or $250,000 a month.
Hastings Dec. 26 cashed in more than 15,000 stock options, which he sold for $378 an option after acquiring them for $27 an option. Net return: $5.3 million.