Netflix shareholders have voted against proposed pay packages for the company’s top executives, including co-chief executives Ted Sarandos and Greg Peters.
Although the vote is nonbinding, it highlights growing discontent among shareholders.
The decision comes shortly after the Writers Guild of America publicly urged shareholders to reject the compensation plans as a strike continues.
Sarandos’s proposed pay package 2023 could amount to $40 million, combining base salary, performance bonuses, and stock options.
Peters, who assumed the role of co-chief executive in January, is set to receive up to $34.6 million.
However, former CEO Reed Hastings, now executive chairman, is expected to earn $3 million this year.
The shareholders voted during the company’s annual meeting, which coincided with the fifth week of the writers’ strike.
No public comments were made during the brief meeting.
Read More: Hollywood writers start strike after negotiation breakdown with studios
In a letter to shareholders, Meredith Stiehm, President of the Writers Guild of America’s Western branch, criticized the compensation plans.
He argued if Netflix could afford such hefty executive pay, it should also adequately compensate its writers, estimating an annual sum of $68 million.
Netflix played a pivotal role in the rise of the streaming industry, transforming the entertainment landscape and compensation structures.
However, writers claim while the industry has experienced a surge in production, their wages have remained stagnant, and working conditions have deteriorated.
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This is not the first time Netflix shareholders have rejected executive compensation.
Last year, a “Say on Pay” proposal was turned down, prompting discussions between the company and major shareholders.
Netflix adjusted its 2023 pay program, including salary caps of $3 million, a requirement for at least 50 percent of compensation to be tied to stock options, and the introduction of performance-based cash bonuses.
Netflix has not commented on when the board will address the pay packages, leaving the writers’ strike ongoing.
The outcome of future discussions between the board and shareholders remains unclear.
