Remember Qwikster? Wall Street doesn’t.
The AP is reporting this morning that the Netflix CEO will get a healthy pay raise in 2014. According to a regulatory filing, Reed Hastings’ annual salary will jump to $3 million, up from the $2 million he earned this year. His annual stock option allowance also improves to $3 million from the current level of $1 million.
It’s hard to argue against the pay increase. Netflix had a great 2013. The stock price is up 296% on the year. It’s trading around an all time high of $365. The stock was the top performer in the S&P 500 and Nasdaq 100 this year.
The company isn’t raking in the profits, though. In its most recent quarterly report, Netflix only made $32 million. But Wall Street doesn’t seem to mind and so the company should stay the course raking in the subscribers and producing award-winning original content. Netflix just needs to remember to listen to their subscribers.