Netflix Inc (NFLX.O) shareholders rejected the 2023 CEO pay plan in a non-binding vote on Thursday, following a strike by Hollywood writers.
The Writers Guild of America West advised investors to vote against Netflix’s top executives’ salaries, calling it “inappropriate” amid the strike’s fifth week.
“While investors have long taken issue with Netflix’s executive pay, the compensation structure is more egregious against the backdrop of the strike,” stated Writers Guild West President Meredith Stiehm.
NBCUniversal parent Comcast Corp (CMCSA.O) conducts its annual shareholder meeting on June 7. The union sent a similar letter.
Stiehm stated that Netflix could afford to pay $68 million to authors demanding better pay since it spent over $166 million on CEO remuneration last year.
In a non-binding “say on pay” vote, Netflix shareholders opposed the 2023 executive salary. A regulatory filing will provide the vote count, the business stated. However, However, 27% of shareholders supported the executive compensation package last year.
After last year’s vote, Netflix implemented a wage cap and performance-based bonus structure for its co-CEOs. Reed Hastings will receive $500,000 and $2.5 million in stock this year. Co-CEOs Ted Sarandos and Greg Peters will each earn $3 million. Sarandos could collect $20 million in stock and a $17 million bonus. Peters receives $17.3 million in stock and a $14.3 million bonus.
The union has negotiated Hollywood executive compensation. Equilar’s 2022 assessment of publicly traded CEO compensation packages placed Endeavor CEO Ari Emanuel and Warner Bros Discovery CEO David Zaslav in the top 10.
The union is pressuring media businesses to negotiate. Contract talks stalled on May 1 over wages, residuals, and working conditions. Another obstacle is AI.
The Alliance of Motion Picture and Television Producers, representing Netflix and studios, is negotiating with the Directors Guild, whose contract expires on June 30. SAG-AFTRA talks begin June 7.