NFLX Prepares to Pay Its Executives for 2023
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NFLX Prepares to Pay Its Executives for 2023

Netflix (NASDAQ:NFLX) hasn’t had the easiest time in 2022. Announcing the end of password sharing, facing down licensing problems, and a host of other matters mean the company needs stable leadership. To that end, Netflix announced the company’s executive pay packages and requirements for stock options. Considering that those stock options are worth a good bit less today, thanks to losses in Tuesday afternoon’s trading, it might be a bit of a bumpy ride ahead.

Said execs will have plenty of choices going forward, as the company—based on word from the SEC—essentially just allocates a certain block of cash that the executives receive as pay. From there, the executives in question can choose how much goes into straight cash and how much goes into stock options. At the top of the food chain, both CEOs—Reed Hastings and Ted Sarandos—and the Chief Operating and Product Officer Greg Peters have a few less choices.

Sarandos and Hastings, for their part, can only take $3 million outright in cash. Peters is limited to $1.5 million, with all three required to take at least 50% of their pay in stock options. The trio will also be subject to a cash bonus program based on reaching certain metrics.

Both Hastings and Sarandos kept their cash payout well under the cap, though. Hastings will take home just $650,000 in base salary, with an additional $34 million in stock. Sarandos, meanwhile, will take significantly more in cash, with $3 million against options worth an additional $20 million.

Overall, analyst consensus calls Netflix a Moderate Buy right now. Thanks to its average price target of $302.76 per share, the stock has 6.35% upside potential.

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