Episode Details

Story of the Week (DR):

Warner Bros. Discovery Reworks CEO Pay, Reducing David Zaslav’s Massive Compensation DR

David Zaslav will take a pay cut after Warner Bros. Discovery splits up—with a big hit to his bonus

David Zaslav Is Getting a Pay Cut

Warner Bros to significantly slash CEO David Zaslav’s pay package

Warner Bros Discovery CEO David Zaslav Pay to Drop After Company Split

David Zaslav’s Pay To Be “Substantially” Lowered Ahead Of Split, WBD Says, But CEO Will Still Reap Rewards

If Zaslav hits 100% of his operational and financial goals in the first year after the split, his target pay will be $16.5mn, compared with $37mn in the current contract. If he hits 200% of the targets, it will be as high as $30mn, the company said on Monday.

However, the bulk of Zaslav’s future pay will be based on stock options after shareholders rebuked a model based on free cash flow generation.

The securities filing made late on Monday said the beleaguered media boss would receive about 24mn in WBD shares that could be purchased for the current $10.16 price.

If the share price were to double, the package could eventually be worth nearly $250mn.

Two weeks after 60% of Warner Bros. Discovery shareholders rejected CEO David Zaslav’s $52M pay plan, the Compensation Committee restructured his plan using Hollywood’s latest CGI, special effects, and most seasoned stunt doubles: his new plan reduces his annual pay targets significantly–from $37M to $17M if he hits 100% of his targets–but the devil is in the details as he is eligible for $37M if he reaches 200% of his targets and is getting a massive option grant of 21 million shares at an extremely low strike price of around $10 per share, giving him the theoretical opportunity to make $1.4B if Warner Brothers’ share price regains its 2021 high of $77.

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