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Netflix Appoints New CEO As Reed Hastings Resigns

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Netflix

American subscription-based streaming service, Netflix has announced the appointment of its new CEO following the resignation of Reed Hastings, Co-Chief Executive Officer of Netflix who held the position for about 25 years.

This was made known in a blog post published by the company, as Hastings said he will now be the executive chairman of the company while Greg Peters will step up from COO to co-CEO with Ted Sanders. Netflix operates with two CEOs.

The post reads “Starting today, Greg Peters will step up from COO to become Ted’s co-CEO. Going forward, I’ll be serving as Executive Chairman, a role that founders often take (Jeff Bezos, Bill Gates, etc.) after they pass the CEO baton to others. Ted, Greg, and I have been working closely together in different capacities for 15 years. As is common in long, effective relationships, we’ve all learned how to bring out the best in each other. I look forward to working with them in this role for many years to come.”

The announcement helped boost the company’s share price by about 6%.
The change is coming at a period where Netflix faces increased competition from the likes of Hulu, Disney, and Amazon who have also jumped in on the lucrative streaming business.

As part of the executive compensation, the company reported in an SEC filing that co-CEO, Greg Peters would receive an annual salary of $3 million with an annual stock option allocation of $17.325 million, and an estimated target bonus of $14.325 million. Peters also joins the board.

Also, as executive chairman, Hastings will receive an annual salary of $500,000 with no target bonus, and a stock option allocation of $2.5M.

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