Netflix co-CEO Ted Sarandos saw his total compensation dip slightly to $49.8 million in 2023, compared to $50.29 million in 2022, after the streamer made changes to its executive pay policies.
The compensation package included a $3 million base salary, $28.3 million in option awards, $16.5 million in nonequity incentive plan compensation and $1.98 million in “other” compensation, including $13,200 in company matching contributions to his 401(k) plan, $55,913 for car services, $620,013 for his personal use of company aircraft and $1.3 million in residential security costs. In comparison, Sarandos’ 2022 package included a $20 million base salary, $28.5 million in option awards and $1.78 million in “other” compensation.
Meanwhile, Netflix co-CEO Greg Peters, who was elevated to the role in January 2023 after Reed Hastings stepped down, received $40.1 million in total compensation for the year, up from $28.1 million in 2022. His package included a $2.89 million base salary, $22.67 million in option awards, $13.9 million in nonequity incentive plan compensation and $620,602 in “other” compensation.
Hastings, who serves as executive chairman, received $11.2 million in total compensation for the year, down from $51 million in 2022. The package included a base salary of $510,962, $10.6 million in option awards and $136,092 in “other” compensation.
The median Netflix employee made $200,761 in 2023. The ratio of Sarandos and Peters’ compensation to the median employee was 248 to 1 and 204 to 1, respectively.
After pushback from shareholders, Netflix decided to cap its CEOs base salaries at $3 million and required that 50% of their pay be in stock options. Shareholders can oppose executive compensation packages during nonbinding “say-on-pay” votes at the company’s annual shareholder meetings.
“At our 2023 annual meeting, 28.7% of voted shares approved the compensation of our named executive officers. The Compensation Committee reviewed these voting results, recognizing the importance of continuing to engage with shareholders to solicit feedback and better understand their concerns regarding our executive compensation program,” the company stated in its proxy filing on Thursday.
“In our engagements with shareholders before and after the 2023 annual meeting, shareholders appreciated the Compensation Committee’s efforts to address shareholder concerns and acknowledged that the changes to the 2023 executive compensation program were positive. Despite this feedback, the two consecutive years of notably low say-on-pay vote results emphasized continued dissatisfaction by many shareholders with elements of our executive compensation program.”
Netflix’s 2024 annual meeting is scheduled for June 6.
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