Although the average CEO saw hefty pay increases this year, it’s a different story for Netflix honcho Reed Hastings. Following a year in which the company introduced a rate increase coupled with a short-lived decision to spin off the disc-rental division as Qwikster, causing an exodus of subscribers, Hastings will receive fewer gold coins to toss into his money bin.
According to the AP, Hastings will receive a $1.5 million stock option allowance next year, compared to the $3 million he received this year. The stock options are on top of his $500,000 base salary.
In the current corporate environment, it seems to be the underlings who usually suffer pay freezes or cuts to make up for an unsuccessful year. It’s better for company morale when those at the top share the hit.
Netflix CEO Reed Hastings’ pay chopped after bumpy 2011 [AP via Mercury News]