If you’ve been following along on Warner Bros. Discovery’s chaotic journey in recent years, it might feel like ever since David Zaslav became CEO in 2022, there has been one problem after another. Among other unpopular decisions, Zaslav has been behind the shift from HBO Max to Max (and now the shift back to HBO Max FROM Max), the shelving of Batgirl, the canceling of Coyote vs. ACME, the closing down of CartoonNetwork.com, and more. And throughout all of that, it seemed like there were no repercussions for questionable decision-making. But now, Zaslav is finally getting a pay cut. And even though this “substantial” reduction in compensation appears to come in response to the company now having TWO CEOs as it splits into two entities, we still feel it’s just desserts.
Of course, even on his worst pay day and after a pay cut/reduction, David Zaslav is making more than we could ever dream of. But still, it feels like a pay cut for a CEO is a rare thing. And we feel like it should be way more common. Here’s what we know.
Deadline reports that in an SEC filing, Warner Bros. Discovery reports revised pay packages for its new CEOs. And David Zaslav’s new agreement will “significantly reduce his target annual compensation, including lowering his annual cash compensation opportunity and reorienting the total pay mix toward long-term incentives.” The change will “foster a stronger alignment with stockholders and incentivize sustained, long-term value creation.”
Earlier this month, in a move that does seem more aligned with thoughts on poor performance, Warner Bros. Discovery shareholders voted against approving Zaslav’s 2024 compensation package of $51.9 million. This vote was more of an expression of disapproval than anything binding, but it seems it was heard.
So, where does this pay cut leave poor David Zaslav? Well, Variety shares that he now has a contract through December 2030 as head of the new Studios & Streaming company. His base pay salary remains $3 million a year. But his annual cash bonus opportunity has been drastically reduced to $6 million from $22 million. And his “actual payout [is] based on the achievement of performance goals.” As far as annual equity bonus target value, Zaslav drops from $23.5 million to $15.5 million during his first year receiving an equity grant from the company and then will shift to $7.5 million per year every year after.
But don’t worry, there are still millions of dollars in stock options and a “car allowance of $1,400 per month,” plus “125 hours of personal use per year” on private planes. Pay cut or not, Zaslav couldn’t very well fly with the populace, could he?
Ultimately, Zaslav is still rich. And still not really reprimanded for some of his poor decision-making. But we’ll take our wins where we can… And remind companies to pay their creators!
Content shared from nerdist.com.