Netflix will be paying CEO Reed Hastings $2 million in salary and $2 million in stock options.
In 2012, Reed took home just $500,000 plus $1.5 million in stock options.
Why did Netflix get so generous? Well, truth to be told Netflix performed really well in 2013. It’s shares were up 29 percent!
Who else can Netflix thank other than the CEO?
Netflix did a similar move last year when Netflix took a tumble and it’s share fell over 40% in 2011. Netflix cut Reed’s stock options in half because of the company’s failure in 2011.
Netflix sure has a very challenging year ahead and it’s gonna need all the help from Reed Hastings to help it steer through all the roadblocks.
Earlier this fall, Netflix warned of a disappointing outlook after releasing its third-quarter earnings report. In the first three quarters of 2012, Netflix added 3.4 million new video streaming subscribers in the U.S., falling short of its previously announced goal of 7 million.
Netflix’s costs are also rising, because studios are demanding a lot more cash for the streaming content they’re providing. At the same time, subscriptions to the company’s DVD service are falling.
In October, corporate raider Carl Icahn said Netflix is a prime takeover target for technology giants as he bought a nearly 10% stake in the company.
Hastings himself got into a bit of hot water, when the Securities and Exchange Commission delivered him a Wells Notice for posting information about the company on his Facebook page.