David Zaslav, the unfortunate CEO of the company formerly known as Warner Bros. Discovery (the company, which was once two separate companies but became one, is splitting up again), has often been accused of being bad at his job and, now, it would appear that the people who pay his salary may agree.
A new report from Deadline finds that Zaslav is scheduled to receive a sizable pay cut this year. Citing a recent SEC filing, Deadline notes that a new business 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.” This shift will “foster a stronger alignment with stockholders and incentivize sustained, long-term value creation,” the document says.
In 2023, Zaslav’s compensation package was boosted substantially from what it had been in 2022. Zaslav received a package worth approximately $50 million. That represented a 26.5 percent increase over the preceding year in which he reportedly made a total of $39.2 million. Those payouts paled in comparison to 2021, when Zaslav technically made $246 million from stock options appended to a new, multi-year employment contract with the company.
Now, Zaslav will have his wages slashed and capped, so as to better “align” them with a “pay-for-performance” model championed by shareholders, a statement from WBD Board Chair Samuel A. Di Piazza Jr. told Deadline. The outlet expounds on Zaslav’s new pay thusly:
After the separation, Zaslav will have a contract through December 31, 2030, and a base salary of $3 million a year. His target annual cash bonus opportunity will be reduced to $6 million, with the actual payout based on the achievement of performance goals established by Streaming & Studios’ compensation committee. The annual bonus payout is subject to a cap of 200% of the target amount. Zaslav will also qualify for annual equity awards following the separation under the Streaming & Studios company’s equity incentive plan. The target value of the awards will be $15.5 million in the first year that Zaslav receives an equity grant from Streaming & Studios and will decline to an annual target value of $7.5 million per year thereafter.
Zaslav assumed power at Warner Bros. Discovery immediately after the merger between the two, and his strategy (which has often been criticized by consumers and fans alike) was to begin cutting expenses and projects while overseeing a large number of layoffs. The re-splitting of the company has been mocked quite a bit online, though Zaslav has put a happy spin on the development: “The cultural significance of this great company and the impactful stories it has brought to life for more than a century have touched countless people all over the world,” he said, in a statement associated with the split. “It’s a treasured legacy we will proudly continue in this next chapter of our celebrated history.”
Read the full article here
