Netflix shareholders vote to reject executive pay packets

NETFLIX shareholders have voted to reject pay packages for the streaming giant’s top bosses as a writers’ strike continues to rattle Hollywood.

Investors rebelled against compensation plans for figures including co-chief executives Ted Sarandos and Greg Peters amid a protest against lavish pay deals for media bosses.

Mr Sarandos is poised to take home $40m (£32m) in salary, bonuses and stock options, while Mr Peters, who was named co-chief executive in January, stands to make $35m. Reed Hastings, Netflix’s co-founder and executive chairman, will earn $3m. The backlash comes as strike action taken by thousands of screenwriters across Hollywood enters its second month.

Writers are calling for higher pay as the streaming boom transforms how people watch TV and films, as well as seeking assurances that artificial intelligence will not be used to create scripts.

The Writers Guild of America (WGA), which represents more than 11,500 screenwriters and is leading the strikes, this week urged investors to vote against the Netflix pay awards.

In a public letter, WGA West president Meredith Stiehm wrote: “While investors have long taken issue with Netflix’s executive pay, the compensation structure is more egregious against the backdrop of the strike.

“Shareholders should send a message to Netflix that if the company could afford to spend $166m on executive compensation last year, it can afford to pay the estimated $68m per year that writers are asking for in contract improvements and put an end to the disruptive strike.”

The vote, held at Netflix’s annual shareholder meeting yesterday, was non-binding, meaning the company can choose to ignore the results.

Netflix declined to comment.