Netflix Employees Press for More Pay Flexibility as Stock Drop Wipes Out Option Value

Netflix’s stock collapse this week has wiped out the value of all stock options issued to company employees since 2018. It didn’t take long for employees to complain: At a staff meeting the day after the company’s earnings report on Tuesday, employees pressed the company to consider changes to existing compensation arrangements so people could have less exposure to the stock price, according to people familiar with the situation.

The complaints put the spotlight on Netflix’s approach to stock compensation. The streaming giant allows employees to decide how much of their compensation should be paid in stock options and how much in cash. Co-CEO Reed Hastings, for instance, took 98% of his $34.65 million compensation as stock options in 2021, Netflix has said. His co-CEO, Ted Sarandos, who earns the same, took only 42% of his compensation as options.