Netflix CEO to Get Beefy Pay Raise in 2013

by Christopher Freeburn | January 2, 2013 11:03 am

Netflix CEO to Get Beefy Pay Raise in 2013

netflix 630 flickr 300x225 Netflix CEO to Get Beefy Pay Raise in 2013[1]Netflix (NASDAQ:NFLX[2]) CEO Reed Hastings will likely be paying a lot more taxes in 2013[3].

The head of the DVD-rental and streaming-video company will see his salary jump from $500,000 last year, to $2 million this year. He’ll also receive $2 million in stock options, up from $1.5 million this year, the Associated Press noted.

Hastings accepted a 43% pay cut last year in the wake of investor fury over the fallout from subscription hikes and a rescinded decision to split the company[4]. Those moves aggravated subscribers, some of whom canceled their service, and caused company shares to tumble more than 70%.

In 2011, Hastings received $3.5 million in total compensation.

While the company expects to add subscribers this year, its shares have not fully recovered from the missteps and remain below $100 a share, a far cry from the nearly $300 a share they traded at in 2011.

Netflix shares rallied in November after activist investor Carl Icahn acquired a 10% stake in the company[5].

Shares of Netflix rose fractionally in Wednesday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/06/netflix_630_flickr.jpg
  2. NFLX: http://studio-5.financialcontent.com/investplace/quote?Symbol=NFLX
  3. will likely be paying a lot more taxes in 2013: http://hosted.ap.org/dynamic/stories/U/US_NETFLIX_EXECUTIVE_COMPENSATION?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-12-31-10-04-55
  4. a rescinded decision to split the company: http://investorplace.com/2011/10/netflix-rewinds-dvd-vs-streaming-split-but-damage-is-already-done-qwikster-nflx/
  5. acquired a 10% stake in the company: http://investorplace.com/2012/11/icahn-has-the-right-script-for-netflix/

Source URL: http://investorplace.com/2013/01/netflix-ceo-to-get-beefy-pay-raise-in-2013/
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