Netflix Missteps to Cost CEO $1.5 Million in Stock Options
Netflix Missteps to Cost CEO $1.5 Million in Stock Options
Posted 12/23/2011 at 11:45am
| by Paul Lilly
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Reed Hastings and everyone else behind the trenches at Netflix would probably like a do-over for all of 2011. They're not getting one, and for Hastings, the company's CEO, he's not getting the full amount of his stock option award next year, either. Instead, he'll receive exactly half of what he would have been entitled to had things not gone so wrong for Netflix in recent months, but don't feel too bad for Hastings.
His 50 percent reduction in stock option awards still amount to a cool $1.5 million, according to regulatory documents Netflix filed this week, AP reports. That's on top of the half a million dollars he'll receive in base salary, giving him a grand total of $2 million to pay the bills with.
Netflix is coming off of a rough year in which its share price has plummeted 75 percent since the middle of July. The streaming movie and DVD-by-mail company has also lost at least 800,000 subscribers due to controversial business decisions, like raising subscription prices and announcing a completely separate DVD rental business, a decision that was later renounced.
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daveny5
December 25, 2011 at 10:19am
I'm cryin'...... NOT!
He made a couple of bonehead decisions and he should pay the price. I've already dropped the disk service and may drop the streaming soon in favor of Amazon's offering.
biggiebob12345
December 24, 2011 at 1:35pm
Stock tanks by 75% means you should get paid 75% less than you did last year. It's amusing that these companies act like their CEOs are irreplaceable and if they didn't get a billion dollars a year then the company would fail. Truth is just about anyone with a college education and some common sense could make these "high level" decisions.
xxcarrier
December 23, 2011 at 3:27pm
It would be poetic justice if he would lose 60% of his salary, and that his paycheck would come from multiple banks, with which he would have to use separate, incompatible finance applications to manage his funds.
Zoandar
December 23, 2011 at 2:58pm
Agenda: 1- Screw 800,000 customers 2-Collect 2 Million dollars 3-Winter in the Hamptons CHECK!
don2041
December 23, 2011 at 1:58pm
Wow I wish I got $2 million every time I fucked up. I,d be as rich as Bill Gates by now.
neoxalucard
December 23, 2011 at 12:51pm
Not for long, lol...
Srysly, I'm switching to Hulu Plus. I was waiting for the Wii app, b/c then all of my systems would be covered. But I can wait no longer, Hulu seem better.
bling581
December 27, 2011 at 11:04am
I still have both. Hulu is mostly TV shows so if you're into movies too it doesn't quite satisfy.
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