The exec will now make $4 million, half in cash and half in options which could become much more valuable than cash if the company's stock improves in the future.
In 2011, the company attempted unsuccessfully to split their DVD and streaming operations while raising the price on consumers. Additionally, subscriber growth stagnated. The backlash was humongous and the company's stock fell from over $300 per share to as low as $60 per share in just a matter of months. The Board of Directors cut Hastings' salary from $3.5 million in 2010 to $2 million.
Besides Hastings, CFO David Wells' salary was raised slightly to $1.1 million.
Written by: Andre Yoskowitz @ 30 Dec 2012 19:03