updated 06:17 pm EST, Fri December 28, 2012
Hastings to earn $4 million next year at Netflix
Netflix CEO Reed Hastings will see a bigger paycheck from the video streaming service next year, with the streaming service revealing a $4 million compensation package in documents filed today with the Securities and Exchange Commission. Hastings will receive $2 million in salary and $2 million in compensation through stock options, with the latter growing or shrinking in value depending on Netflix's performance. The 2013 pay package represents a significant jump for Hastings, who earned $500,000 in salary and $1.5 million in stock options in 2012.
The streaming service's most recent financial results saw Netflix pulling in $8 million in profit on $905 million in revenue. Under Hastings' guidance, the company has continually added users to its streaming service, picking up 1.16 million new domestic streaming customers and 690,000 international streaming subscriptions in the third quarter. Netflix's most recent figures had the company at 29.31 million total streaming subscriptions, with 25.1 million of those based in the United States.
The Wall Street Journal reports that Hastings' 2012 compensation was cut sharply after the company tried and failed in 2011 to spin off its DVD rental service, a failure that frightened investors and caused subscribers to revolt. Netflix shares closed today down $1.17 to $89.33.