Netflix CEO Reed Hastings Gets $1.5 Million Pay Cut for 2012
18.05.12
Netflix Inc. (NASDAQ: NFLX ) Chief Executive Officer Reed Hastings will receive $1.5 million less in stock option allowance for next year, a corporate move that comes on the heels of a horrible stock performance for Netflix in 2011. The CEO will retain his $500,000 annual base salary according to regulatory documents that were filed Thursday.
The 2011 calendar year provided a harsh environment for the online video streaming company, which once held a dominant industry position in the United States market. Netflix has a subscriber base of over 20 million customers who stream online content from personal computers and order newly-released movie titles on DVDs via the firm’s mail order business.
The Rise and Fall of Netflix
In mid-July Netflix’s stock price peaked at just over $300 per share , capping off a meteoric rise from its humble beginnings of $5.00 per share nearly a decade ago. The video streaming service had earned a dominant market position in the United States and convinced over 20 million Americans to sign-up for its subscription service at a time when free online video streaming services were rampant.
Source: IRA