Netflix CEO sees stock options cut to US$1.5M from US$3M in 2012 after 60% subscription increase leads to canceled memberships and DVD-rental spinoff Quikster proves unpopular
December 27, 2011
– Netflix CEO Reed Hastings last week saw his stock options reduced to US$1.5 million from $3 million in 2012, while his $500,000 base salary remained intact, according to regulatory filings, The Wall Street Journal reported Dec. 23.
A 60% increase on a popular subscription led to scores of canceled memberships last July. Two months later, customers were again upset by an announcement that Netflix would separate its DVD rental service into a separate business, Qwikster. The plan was canceled just three weeks after it was announced due to customer dissent.
The company expects to be unprofitable in 2012 and has sought to raise around $400 million in cash, signaling that acquiring video content has turned out to be rather expensive, the publication stated.
The company's Chief Product Officer Neil Hunt and Chief Content Officer Ted Sarandos both saw raises in their stock-option allowances.
The primary source of this article is The Wall Street Journal, New York, New York, on Dec. 23, 2011.