Netflix said it expects to pay its co-CEOs, Ted Sarandos and Greg Peters, $40 million each in 2024, the same target as in 2023.
Both executives get a compensation package of $3 million in base salary, $6 million in bonuses, $15.5 million in restricted stock units and $15.5 million in performance-based restricted stock units, according to a filing with the Securities and Exchange Commission.
The move follows a nonbinding vote by shareholders in June to reject the big pay packages.
Executive chairman Reed Hastings is expected to get total compensation of $1 million, while chief financial officer Spencer Neumann gets $!5 million and chief legal officer David Hyman receives $11 million.
Netflix said that its board eliminated the option executives had to decide how much of their pay came in the form of stock. The board’s compensation committee said some shareholders were concerned executives might take all of their pay in cash.
The company said it also expanded participation in its annual bonus program to all executives.
Netflix also changed its executive severance plan. If an executive is terminated or resigns for good reason within three months before or 24 months after a change in control, those executives will receive a cash lump sum equal to two times the sum of their annual base salary and target annual bonus, a pro-rata lump sum cash bonus based on target performance under the bonus plan and cash for continue health, dental and other benefits.
