Netflix doubles down on CEO Reed Hastings' pay package
Movie streaming company gives its chief a hefty raise for 2013, a year after reducing his compensation in the wake of a botched plan to split the company.
Netflix has doubled the compensation package CEO Reed Hastings will receive in 2013 over the current year, the streaming and video rental company revealed today in a regulatory filing.
Hastings will receive $2 million in salary and another $2 million in compensation through stock options, according to a document filed with the U.S. Securities and Exchange Commission. The increase is a significant pay bump over 2012, when Hastings received $500,000 in salary and $1.5 million in stock options.
The compensation increase would seem to represent renewed confidence in Hastings, whosein December 2011 following a botched plan that year to split the company in two -- a plan that upset investors and caused a subscriber revolt. After a price hike led to a number of subscriber cancellations, the company announced plans to spin off its DVD-by-mail operations into a new company called Qwikster -- after only three weeks.
Stock in the Los Gatos, Calif.-based company closed today at $89.33, up 22 percent from a year ago but off its 52-week high of $133.43. The company traded as low as $52.81 this summer but got a boost in the fall when activist investor Carl Icahn revealed that he had acquired a 10 percent stake and hadfor Netflix.