Full Breakdown
Netflix Co-CEOs' Compensation Declines in 2025
4/17/2026, 2:46:23 AM
Overview of Compensation Changes
In 2025, Netflix co-CEOs Ted Sarandos and Greg Peters received compensation packages of $53.9 million and $53.2 million, respectively. This marks a decrease from their 2024 earnings, which were $62 million for Sarandos and $60 million for Peters. The details of their compensation were disclosed in an SEC filing coinciding with Netflix's first-quarter 2026 earnings announcement.
Breakdown of Compensation
Both Sarandos and Peters maintained a base salary of $3 million, unchanged for the past three years. The majority of their earnings stemmed from stock awards, amounting to $41.4 million for Sarandos and a similar figure for Peters. Each co-CEO received cash-based awards exceeding $7 million, while neither received bonuses or option awards for the year. Additionally, Sarandos had $2.5 million in "other compensation," which includes personal use of Netflix's corporate aircraft, compared to Peters' $1.7 million in similar benefits.
Other Executive Compensation
Reed Hastings, co-founder and former executive chairman, received a total of $1.24 million in 2025, reflecting his base salary of $33,846. Chief Financial Officer Spencer Neumann's compensation was reported at $20.8 million, down slightly from the previous year, while Chief Legal Officer David Hyman earned $15.4 million. Chief Global Affairs Officer Clete Willems, who joined Netflix in April 2025, received $14.3 million, including a $2.8 million sign-on bonus, the only bonus awarded among the executives.
Context of Compensation Decline
The reduction in compensation for Sarandos and Peters comes amid a backdrop of Netflix's financial performance. The company reported better-than-expected fourth-quarter revenue, driven by significant member growth, particularly in Japan. This performance may have influenced the decision to adjust executive pay, reflecting a broader trend of aligning compensation with company performance.
Criticism & Opposition
While the decrease in compensation could be viewed as a response to market conditions, some analysts argue that the substantial pay packages remain high relative to industry standards, especially considering the absence of bonuses. Critics suggest that the company should focus on more equitable compensation structures across its workforce.
Official Statements & Responses
In their earnings call, Sarandos and Peters emphasized their commitment to Netflix's growth and innovation, stating, “We are focused on delivering value to our shareholders and subscribers.” They acknowledged the challenges faced in the competitive streaming landscape but expressed optimism about future growth.
What's Next
As Netflix continues to navigate the evolving streaming market, further adjustments to executive compensation may occur, particularly as the company evaluates its financial performance and strategic direction in the coming quarters.
