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Executive Compensation at Warner Bros. Discovery
In a recent turn of events at Warner Bros. Discovery, CEO David Zaslav received a substantial pay raise, amounting to a remarkable 25 percent increase. Zaslav, the current top executive at the prominent media and streaming establishment, saw his earnings surge by approximately $50 million compared to the previous year.
Details of the Pay Raise
The specifics of Zaslav’s increased compensation were documented in this year’s federal proxy filing, a mandatory disclosure to the SEC. According to the disclosure, Zaslav amassed a total of $49.7 million in 2023 through a combination of salary, stock rewards, and diverse compensation schemes. This revelation showcases a notable 26.5 percent escalation from his earnings in the previous year.
An earlier proxy filing unveiled that Zaslav grossed $39.2 million in 2022. However, these recent financial gains are dwarfed by his 2021 earnings, where Zaslav procured a staggering $246 million from stock options associated with his new extended employment contract with the company.
Critical Voices
Despite his hefty paycheck, criticism seems to surround Zaslav, questioning the appropriateness of such exorbitant compensation. Some contend that rewarding any individual with $50 million is excessive, bordering on unjustifiable. Additionally, the performance of Warner Bros. Discovery has faced challenges, with financial setbacks painting a less than ideal picture of the company’s current trajectory.
In 2023, Warner Bros. Discovery witnessed a decline in its linear TV and advertising sectors, coupled with a 12% drop in studio revenue. Interestingly, the direct-to-consumer streaming division managed to eke out a nominal profit for the year. The company reported a 4% decrease in revenue, totaling $41.3 billion, and incurred a net loss of $3.13 billion, a decline from the $5.36 billion loss in the previous year.
Since Zaslav’s assumption of leadership in 2022, his decision-making has come under scrutiny. Following the merger of the two companies, cost-cutting measures, layoffs, and project cancellations have characterized his tenure. Zaslav has faced backlash for terminating various projects and rebranding HBO Max, amongst other contentious actions.
February’s Q4 results revealed a challenging landscape for Warner Bros. Discovery, marked by weak linear advertising performance and struggles within the studio division, as documented by Deadline.
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