Warner Bros. Discovery Restructures CEO Compensation: A Closer Look at David Zaslav’s Reduced Pay Package

David Zaslav, the CEO of Warner Bros. Discovery, is about to face changes in his pay package, and people are taking notice. This shift comes as the company plans to split its TV networks and Discovery+ into a new entity.

Zaslav will remain with the studios, HBO, and Max, while Gunnar Wiedenfels, his CFO, will head the new company. This restructuring aims to better reflect Zaslav’s contributions and align his pay with the company’s stock performance. The focus will now be on total stock returns, moving away from metrics like debt reduction and cash flow.

According to sources, Zaslav’s compensation will decrease. He’ll receive fewer cash payments and more stock options, totaling nearly 21 million. Of these, 60% will be based on performance. This change follows a significant shareholder vote where many expressed discontent over Zaslav’s prior compensation.

The board is reacting to this feedback. They stated the revision aims to address concerns regarding CEO pay. Zaslav has been one of the top-paid executives in media, which raised eyebrows as shareholders saw their investments drop.

Under the new plan, Zaslav’s base salary will remain at $3 million, but his annual cash bonus will decrease from $24 million to $6 million, with a potential to earn double that amount. Equity awards will also see their target values adjusted downward over the coming years.

Many details are still being finalized, but it’s clear that Zaslav’s financial rewards will shift significantly. Despite these changes, his "golden parachute" remains largely intact, ensuring he isn’t facing financial hardship.

As this story unfolds, it highlights a broader trend in corporate governance. A recent survey showed that 76% of investors believe executive pay should be closely tied to company performance. This shift may represent a growing demand for greater accountability among top executives.

In a world where public opinion can rapidly influence corporate decisions, Zaslav’s pay overhaul could signal a larger move toward aligning executive compensation with overall company health and shareholder interests.

For more insights on corporate governance trends, refer to the latest reports from Harvard Business Review.

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