There’s trouble at streaming giant Netflix (NASDAQ:NFLX) as shareholders got a load of the proposed executive pay plan. Said shareholders did not like what they saw and voted heavily against the proposals. The move was sufficient to send Netflix up fractionally in Friday afternoon trading, though what this means for co-CEOs Ted Sarandos and Greg Peters is as yet unclear.
While the vote itself wasn’t binding, and Netflix’s board can simply throw the results aside, the vote was instead regarded as a protest against the proposed compensation plan. Given that Sarandos is in line to make as much as $40 million and Peters $35 million, at a time when Netflix is fighting so hard for every loose nickel it can get that it’s frantically cracking down on password sharing, such a protest isn’t that surprising.
Investors were already upset with Netflix brass for shelling out huge amounts for content even as customers were looking for the door. But with Netflix’s stock making a comeback—up 36% so far this year, noted a CNN Business report—shareholders may be less concerned about the content spending than some might think. Still, offering up $75 million to pay two people might have been a little tougher to swallow, and it seems shareholders aren’t all that happy.
However, even as Netflix is up just a hair today, analysts are somewhat split on its overall future. Netflix is considered a Moderate Buy by analyst consensus, with 17 Buy ratings, 13 Holds, and two Sells making up the mix. Further, with an average price target of $368.54, Netflix stock offers investors a downside risk of 8.84%.
