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TechNetflix

Netflix’s Reed Hastings Earned an Extra $1.1 Million Last Year

By
Chris Morris
Chris Morris
Former Contributing Writer
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By
Chris Morris
Chris Morris
Former Contributing Writer
Down Arrow Button Icon
April 23, 2018, 11:20 AM ET
Latest Consumer Technology Products On Display At CES 2016
Netflix CEO Reed Hastings delivers a keynote address at CES 2016 at The Venetian Las Vegas on January 6, 2016 in Las Vegas, Nevada. CES, the world's largest annual consumer technology trade show, runs through January 9 and is expected to feature 3,600 exhibitors showing off their latest products and services to more than 150,000 attendees. Photograph by Ethan Miller—Getty Images

Netflix chairman and CEO Reed Hastings took a $50,000 pay cut last year, but still saw his overall compensation increase 5% for the year.

In a proxy statement filed Monday, the company revealed Hastings’ salary dropped from $900,000 in 2016 to $850,000 in 2017, but he earned more stock options ($23.5 million versus $22.3 million in 2016) for a total comp package valued at $24.38 million. Hastings, who runs a $100 million philanthropic fund as well, now owns 10.76 million shares of Netflix, valued at roughly $3.5 billion and giving him a 2.5% stake in the company.

The median worker’s total compensation at Netflix for 2017 was $183,304, the company also disclosed. That means the ratio of CEO pay to the median was 133 to 1, Netflix said.

Being head of the company has some serious perks, too. Hastings owns two aircrafts, which are leased to Netflix under a time-sharing agreement for his executive travel. Last year, those agreements earned him reimbursements of more than $759,000.

He’s got a pretty nice golden parachute lined up, too. If Hastings is fired, he’ll receive a severance package of $21 million. And if the company undergoes a change in control, he’ll get $28 million.

Hastings, of course, isn’t the only Netflix executive enjoying the company’s success. Chief content officer Ted Sarandos received $22.4 million in compensation last year after a $9 million bonus and $12.4 million in awarded stock option—an 18.6% increase from 2016.

About the Author
By Chris MorrisFormer Contributing Writer

Chris Morris is a former contributing writer at Fortune, covering everything from general business news to the video game and theme park industries.

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