Netflix has doubled Reed Hastings’ salary for 2013. A document filed with the U.S. Securities and Exchange Commission has confirmed that he will receive a yearly wage of $2 million in salary and additionally, $2 million in compensation through stock options.
In 2012, he received a salary for $500K and $1.5 million in stock options. This increase in pay infer that the confidence in Hastings has been reaffirmed by investors after the failed attempt to split Netflix into two divisions.
For those unaware, the sub-division split of the company tried to provide users with two services, online-streaming, and DVD/Blu-ray rental. This split only occurred for 3 weeks, and once Netflix saw the massive crash in their stock, they reverted the split. The company closed at $89.33 on Friday December 28th, 2012. The stock price is slowly increasing from the $133.43 52-week high the company once had. This split has provided other companies examples of what can happen if the split is not valid.