Reed Hastings Gets 50% Pay Hike in 201431 Dec, 2013 By: Erik Gruenwedel
Netflix’s board increases co-founder and CEO’s base salary to $3 million; Hastings sweetens the holidays cashing in more than 15,000 stock options for a gain of $5.3 million
2013 was a good year for Reed Hastings; 2014 will start even sweeter financially for the Netflix co-founder and CEO after the rental service’s board upped his base pay to $3 million from $2 million this year. In addition, Hastings’ annual stock option allowance increased 50% to $3 million, or $250,000 a month.
The subscription streaming pioneer top executive’s total compensation is three times what it was in 2012.
Indeed, 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 gain: $5.3 million. Following the transaction, Hastings owns more than 1 million shares of Netflix common stock.
Netflix shares hit an all-time high of $389.16 in October after ending 2012 at $92.59.
Meanwhile, CCO Ted Sarandos had his base salary increased to $2.5 million, with total compensation pegged at $5 million from $4 million in 2013 and $2.8 million in 2012. CFO David Wells’ total compensation rises to $1.5 million from $1.1 million in 2013 and $1 million in 2012.
Chief product officer Neil Hunt’s compensation increases to $3.5 million from $3 million; $2.5 million in 2012. Greg Peters, recently hired as chief streaming and partnership officer, receives $2 million in total compensation, including a $1 million base salary.