BUSINESS

New Netflix CEO To Earn Annual Salary Of $3 million

 

 

The new Netflix Chief Executive Officer (CEO) will be earning an annual salary of $3 million.

Also, the co-founder of the streaming giant, Reed Hastings resigned as the Co-Chief Executive Officer of Netflix, a position he held for about 25 years. 

NewsBeatng reports that in a blog post published by the company, Hastings said he will now be the executive chairman of the company while Greg Peters will step up from COO to co-CEO with Ted Sanders. Netflix operates with two CEOs. 

Starting today, Greg Peters will step up from COO to become Ted’s co-CEO. Going forward, I’ll be serving as Executive Chairman, a role that founders often take (Jeff Bezos, Bill Gates, etc.) after they pass the CEO baton to others. Ted, Greg, and I have been working closely together in different capacities for 15 years. As is common in long, effective relationships, we’ve all learned how to bring out the best in each other. I look forward to working with them in this role for many years to come.”

The announcement helped boost the company’s share price by about 6%. 

The change is coming at a period where Netflix faces increased competition from the likes of Hulu, Disney, and Amazon who have also jumped in on the lucrative streaming business.

Netflix’s valuation has fallen by about a third in the last year as investors react to a stall in its subscriber growth amidst growing competition.

In reaction, Hastings swallowed his words ditching a long-time strategy of never allowing advertising. The company introduced a new tier of advertising last November to attract more value-driven customers.

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As part of the executive compensation, the company reported in an SEC filing that co-CEO, Greg Peters would receive an annual salary of $3 million with an annual stock option allocation of $17.325 million, and an estimated target bonus of $14.325 million. Peters also joins the board. 

As executive chairman, Hastings will receive an annual salary of $500,000 with no target bonus, and a stock option allocation of $2.5M. 

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