President and CEO of Warner Bros. Discovery, David Zaslav, Gets $49,7 Million Compensation Noting 26,5% Rise While Company is in Cost-Cutting Mode

Warner Bros. Discovery is under scrutiny for its executive compensation practices, with CEO David Zaslav’s 2023 pay package totaling $49.7 million, a significant increase of 26.5% from the previous year. While the company grappled with financial challenges and shrinking business segments, top executives enjoyed substantial pay hikes, raising questions about corporate priorities amidst cost-cutting efforts.

Zaslav’s compensation breakdown for 2023 included a base salary of $3 million, stock awards valued at $23.1 million, a cash bonus of $22 million, and additional compensation for personal expenses such as security services and private jet usage. Other senior executives, including CFO Gunnar Wiedenfels and Chief Revenue and Strategy Officer Bruce Campbell, also received double-digit pay increases despite the company’s lackluster financial performance.

Although Warner Bros. Discovery reported an 86% increase in free cash flow for 2023, reaching $6.16 billion, its studio revenue declined by 12%, and its streaming division barely broke even. The company’s stock has faltered since the merger in April 2022, dropping by 29% year-to-date in 2024, further raising concerns about its financial health and strategic direction.

In its proxy filing, Warner Bros. Discovery attributed its challenges to various factors, including shifts in advertising spending, declining linear television viewership, and increased competition from traditional and tech media giants. Despite these obstacles, the company defended its executive compensation decisions, citing exceptional leadership and strategic achievements by Zaslav and other named executives.

The board’s compensation committee’s decision to adjust performance metrics to account for the impact of industry strikes has also sparked debate. As Warner Bros. Discovery prepares to report its first-quarter 2024 results and convene its annual meeting of shareholders, investors and industry observers are closely monitoring the company’s performance and governance practices amidst ongoing challenges in the media and entertainment landscape.

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