Netflix Inc. has cut CEO Reed Hastings’ annual stock option allowance in half to $1.5 million for 2012, Bloomberg reported today based on a regulatory filing. Hastings’ yearly salary of $500,000 remains the sam. Following a disastrously ill-conceived price hike for its DVD mailing and video streaming service, subscribers revolted and Netflix shares dropped 75% from their July 13 high of almost $300. His stock option allowance for 2011 was $3 million. In addition to subscribers defecting in droves — which caught company management by surprise — Hasting projected losses in fiscal 2012 as it expands into the UK and absorbs higher-prices from new content agreements. Netflix chief marketing officer Leslie Kilgore’s salary for 2012 will be cut to $575,000 from $802,000 in 2011 but her stock option grant was increased to $1.33 million from $1.1 million. Salary for another executive, chief product officer Neil Hunt, will remain $1 million for next year and his stock option allowance will rise to $1.5 million from $900,000. Chief content officer Ted Sarandos will receive a salary hike to $1 million from $903,362 and a stock option boost to $1.8 million from 1.4 million. Netflix rose 4% to close at $73.84 today in New York. Shares have lost 58% since the beginning of the year.
Bloomberg: Netflix Cuts Reed Hastings Stock Options In Half For Next Year
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