NETFLIX, INC. (NASDAQ:NFLX) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02 (e) Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Compensation for Named Executive Officers
The Compensation Committee of the Board of Directors (the “Committee”) has established the annual salaries and stock option allocation for 2019 for the Company’s Named Executive Officers. These salaries and option allocation are as follows:
|
ANNUAL SALARY |
ANNUAL STOCK OPTION ALLOCATION (1) |
|||
|
Reed Hastings, Chief Executive Officer and Chairman of the Board |
$ |
700,000 |
$ |
30,800,000 |
|
David Wells, Chief Financial Officer |
3,500,000 |
2,800,000 |
||
|
Ted Sarandos, Chief Content Officer |
18,000,000 |
13,500,000 |
||
|
Greg Peters, Chief Product Officer |
10,000,000 |
6,800,000 |
||
|
David Hyman, General Counsel and Secretary |
3,500,000 |
3,850,000 |
The number of options to be granted each month is determined by the following formula: (annual stock option allocation ÷ 12) / ([Fair Market Value on the date of grant] * 0.40). Each monthly grant shall be made on the first trading day of the month, shall be fully vested upon grant and shall be exercisable at a strike price equal to the Fair Market Value (as defined in the Company’s 2011 Stock Plan) on the date of grant. The options will be subject to the terms and conditions of the Company’s 2011 Stock Plan and will be administered on a non-discretionary basis without further action by the Board of Directors, provided that only the Board of Directors may change the amount or terms of future grants. These stock options are granted fully vested and can generally be exercised up to 10 years following the date of grant, regardless of employment status.
____________________________________
1 The Company’s stock option program for Named Executive Officers, which is the same for other salaried employees of the Company, provides a minimum annual stock option allowance (equal to 5% of their allocatable compensation) and allows the Named Executive Officers to allocate any amount of their allocatable compensation to receive in the form of stock options.
About NETFLIX, INC. (NASDAQ:NFLX)
Netflix Inc is an Internet television network with over 86 million members in over 190 countries enjoying more than 125 million hours of television (TV) shows and movies per day, including original series, documentaries and feature films. Members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments.
