updated 03:30 pm EST, Wed January 1, 2014
Netflix growth turns into big cash for Hastings
Netflix's ongoing growth will result in a considerable financial boon for Reed Hastings, CEO of the video streaming service. Following a year in which the company's shares quadrupled in value, the AP reports that Hastings will see a 50 percent pay bump for 2014. A recent regulatory filing shows Hastings' annual salary will jump from $2 million to $3 million in 2014.
Coupled with an increase from $1 million to $3 million in Hastings' annual stock option allowance, Hastings' total compensation will double this year.
After starting 2013 at $92.59, Netflix's continual growth and high performance over the course of the year resulted in the stock peaking at $389.16 in October. In the third quarter, Netflix posted $1.106 billion in revenue, earning $32 million in profit, or $0.52 earnings per share.
Netflix CEO Reed Hastings will see a pay boost due to the streaming company's performance. Image via FastCompany.
That quarter saw U.S. net subscribers grow by 1.3 million, while international member growth grew to 1.4 million subscribers. Part of the reason Netflix's profits are so out of scale with its revenues is that the company is pumping funds into its efforts to expand globally. The disparity is also due in part to the company's expanding content offerings, which consume money in the form of production funding. The year saw Netflix introducing both the critically acclaimed House of Cards and the popular Orange Is the New Black, as well as new episodes of cult comedy Arrested Development.