Netflix Announces Pay Increase for Execs
By Davis Freeberg
In an 8K filing this morning, Netflix announced the new terms of their executive compensation package for 2006. Netflix CEO Reed Hastings and CFO Barry McCarthy both had their pay increased to $500,000 per year. This represents a 365% increase over Hastings previously announced salary of $136,000 per year and a 150% increase for Barry McCarthy. Chief Marketing Officer Leslie Kilgore’s compensation was increased from $503,000 to $650,000 and Thomas Dillon their chief operations officer whose position was recently posted on the Netflix Job board, will earn $807,500 compared to the $598,000 that he earned in 2005.
Last year Blockbuster gave their own executives a raise and while Hastings $500,000 is no where near the reported $7,050,000 salary that Blockbuster CEO John Antioco is currently receiving, all four executives will receive Netflix stock options as part of the compensation package. These options are granted on the 1st trading day of each month and are vested immedietely.
*Update – Mulsannetrd pointed out that this 8K is almost identical to an 8K filed in July 2005. The only real difference is that Tom Dillon is set to receive more salary and less stock options then he was in the previous filing.