The annual pay package received by Warner Bros. Discovery boss David Zaslav could be reduced by up to 50% after the company’s proposed split.
It follows a strong rebuke from shareholders at WBD’s recent annual meeting.
80% of shareholders voted against a $51.9 million compensation package awarded to chief executive David Zaslav and his senior leadership team.
Although the vote is non-binding – and Zaslav and his colleagues will likely receive the full amount in this financial year – this could change.
Warner Bros Discovery plans to split into two publicly traded companies; Streaming & Studios and Global Networks. Zaslav will run the Streaming & Studios unit, including HBO and Warner Bros.
Zaslav will be awarded a contract that runs to December 31, 2030, on a base salary of $3 million a year. His annual cash bonus ceiling will be reduced to $6 million, with final payouts dependent on performance goals laid out by Streaming & Studios’ compensation committee.
If Zaslav hits 100% of his operational and financial targets in the first year following the split, target compensation will be $16.5 million, less than half the $37 million in his current contract. However, if Zaslav reaches 200% of his target he still stands to gain $30 million.
