If you’re a Netflix investor, you might want to reach for some pills to control your blood pressure. Although the home video company lost 62.5% of its market value last year, CEO Reed Hastings did just fine — as did all of the other top executives named in the proxy that Netflix filed today at the SEC. True, Hastings’ salary was cut 3.7% to $500,000. The document says that the Compensation Committee “took into account the Company’s performance during 2011 and reduced the Chief Executive Officer’s total compensation by $1.5 million.” But Hastings shouldn’t feel much pain. His stock option award was up nearly 76% to $8.8M. All of the company’s other top execs also made more in 2011 than they did the previous year — collectively they were up 27.6%. Hastings’s compensation accounted for 40% of the pay for the company’s five top execs. His take was about 2.7 times the average for his colleagues. Corporate governance activists become skeptical when the CEO makes more than three times the average. Still, Hastings likely will have to deal with some angry shareholders at the annual meeting, taking place this year on June 1 at the company headquarters in Los Gatos, Calif. The proxy includes shareholder resolutions empowering investors to vote on annually on the entire board. Only one of the seven directors members is up for election this year; three others are up next year and the remaining three are up in 2014. Another proposal would require Netflix to hold a special meeting for investors if owners of at least one-tenth of the shares want one. Netflix opposes both proposals.
By DAVID LIEBERMAN, Financial Editor | Friday April 20, 2012 @ 2:51pm EDTTags: Executive Compensation, Netflix, Reed Hastings
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