Apparently, Netflix’s CEO was taking home a ‘paltry’ sum of $2 million as annual salary. That was until now. The company has now decided to bump up his salary, making is $4 million for the year 2013.
That is certainly a sweet start of the new year for Reed Hastings. However, all of the aforementioned salary will not be paid in cash to Hastings, as was also the case during 2012.
In the current year, Hastings had a salary of $500,000 whereas he received another $1.5 million in stock options. However, he had been taking a far higher salary, clocking at $3.5 million during 2011. Back then, Hastings had apparently made a few faulty decisions for which the company’s stock value took a significant hit.
The share prices came tumbling down from $300 a piece to $70 per share. And with that, Hastings’ annual pay also took a hit. The company’s stock has recovered only slightly since. During this year, the stock value bumped up by 29 percent, rising to $89 a piece.
Although not proportionate to the rise in stock value, Hastings pay has risen to $2 million in cash and another $2 million in stock options. That puts his annual salary figure at a square $4 million.