Netflix CEO Hastings' Stock-Option Allowance Cut by Half for 2012

CMO's Salary Slashed 28% After Tumultuous Year for Video Service

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Netflix, the online and mail-order video service predicting losses for next year, cut the annual stock-option allowance for CEO Reed Hastings by half to $1.5 million.
Reed Hastings
Reed Hastings

Mr. Hastings will receive a salary of $500,000 for 2012, unchanged from this year, according to a regulatory filing today. His annual stock-option allowance for 2011 was $3 million, according to a filing a year ago.

Netflix shares have dropped 75% from their all-time closing high of $298.73 set on July 13 as the company battled a subscriber revolt over price increases and other changes to its mail-order and streaming services. In October, Netflix projected losses in 2012 as it expands to the U.K.

Annual pay for Chief Marketing Officer Leslie Kilgore will be cut 28%, to $575,000, from $802,000 in 2011, according to the filings. Kilgore's option grant was increased to $1.33 million from $1.1 million. The 2012 salary for Chief Product Officer Neil Hunt remains $1 million, and the option allowance will increase to $1.5 million from $900,000.

"We don't comment on board decisions or executive compensation," said Steve Swasey, a Netflix spokesman.

Netflix, based in Los Gatos, Calif., rose 4%, to $73.84, at the close in New York. The shares have lost 58% this year.

Chief Content Officer Ted Sarandos will receive $1 million in salary and $1.8 million in option allowances, compared with $903,362 and $1.4 million, respectively, last year, according to the filings.

--Bloomberg News
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