Netflix Boosts CEO Reed Hastings Pay Package 50% in 2014 to $6 Mil

Company also gives pay raises to content chief Ted Sarandos and CFO David Wells


Happy new year, Reed Hastings: The Netflix co-founder and CEO’s compensation package will climb 50% in 2014 after the company’s stock soared to record levels over the past year.

Hastings, 53, will receive $3 million annual salary and $3 million in yearly stock options, Netflix disclosed in an SEC filing late Monday. That’s up from $2 million in salary and $2 million stock options for 2013.

Also Monday, Hastings disclosed in an SEC filing that he exercised options for 15,238 shares of Netflix stock on Dec. 26, netting $5.34 million on the transaction.

Other Netflix execs are set to receive pay raises in 2014. Chief content officer Ted Sarandos’ total comp will increase from $4 million to $5 million (including $2.8 million base salary) and CFO David Wells’ pay package will increase from $1.1 million to $1.5 million.

Netflix’s share price has shot up nearly fourfold in 2013, rising from $92.01 on Jan. 2 to $366.99 per share on Dec. 30 on investor optimism about the company’s growth prospects and its expansion into exclusive and original content. Netflix broke ground in 2013 by becoming the first Internet-distributed TV show to win at the Primetime Emmy Awards, taking home three for “House of Cards” including David Fincher’s for drama series directing.

In addition, Netflix on Monday terminated its shareholder rights plan — a “poison pill” provision designed to prevent a hostile takeover — which it adopted after investor Carl Icahn accumulated a 9.98% stake last year. Icahn cut his Netflix holdings in half after the stock run-up and Netflix ended the shareholder rights plan two years before it was set to expire.