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3mo ago

Warner Bros. Discovery Shareholders Reject Zaslav’s $51.9 Million 2024 Pay Package

The nonbinding advisory vote highlights investor frustration over executive pay misalignment in the context of a 10 percent revenue decline, a junk credit rating, with emerging speculation over asset spin-offs.

The exterior of the Warner Bros. Discovery Atlanta campus in Atlanta, Georgia, U.S. May 2, 2023. REUTERS/Alyssa Pointer/File Photo
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Warner Bros. Discovery chief executive David Zaslav poses on the red carpet during the Oscars arrivals at the 96th Academy Awards in Hollywood, Los Angeles, California, U.S., March 10, 2024. REUTERS/Aude Guerrucci/File Photo

Overview

  • At the June 2 annual meeting, 59 percent of votes cast opposed the advisory “say-on-pay” measure rejecting Zaslav’s $51.9 million package and other executives’ 2024 compensation.
  • Zaslav’s 2024 package comprised a $3 million salary, $23.1 million in stock awards, $23.9 million in non-equity incentive compensation and $1.9 million in other benefits.
  • Institutional Shareholder Services recommended a no vote, citing limited board responsiveness to shareholder concerns and an unmitigated pay-for-performance misalignment.
  • Warner Bros. Discovery’s revenue fell by 10 percent over the past year, its debt rating was downgraded to junk status and it posted a larger-than-expected first-quarter loss.
  • Analysts note the company’s split into Global Linear Networks and Streaming & Studios could pave the way for a breakup or spinoff of its declining cable networks.