8-KLeadership ChangesExhibits & Filings

NETFLIX INC 8-K Report, Executive Changes (Dec 7, 2010)

Filed December 7, 2010For Securities:NFLX

Summary

This Form 8-K filing by Netflix, Inc. (NFLX) on December 7, 2010, announces a key leadership change within the company. Barry McCarthy has resigned as Chief Financial Officer (CFO), with his departure effective December 10, 2010. This marks the end of his tenure in a critical financial role for the company. Simultaneously, Netflix has appointed David Wells as the new CFO, succeeding Mr. McCarthy. Mr. Wells brings a wealth of internal experience, having served as Vice President of Finance Planning and Analysis since August 2008, and holding other finance-related roles within Netflix since 2004. The company has outlined Mr. Wells' compensation package, which includes a base salary and a significant portion in stock options, aligning his incentives with employee and potentially shareholder interests. The filing also details severance and indemnification provisions for Mr. Wells, standard for executive appointments.

Key Highlights

  • 1Barry McCarthy resigns as Chief Financial Officer (CFO), effective December 10, 2010.
  • 2David Wells appointed as the new Chief Financial Officer (CFO), succeeding Barry McCarthy.
  • 3David Wells has a strong internal track record with Netflix, having served in various finance roles since 2004.
  • 4David Wells' compensation includes a $750,000 annual salary, with $250,000 elected as stock options.
  • 5Mr. Wells is eligible for the Company's standard benefits package and executive severance plan.
  • 6The executive severance plan provides for nine months of base pay and stock option allowance upon termination (excluding cause, death, or disability).
  • 7The filing references an attached press release as Exhibit 99.1, which provides further details on the executive changes.

Frequently Asked Questions

The 8-K filing does not provide specific reasons for Barry McCarthy's resignation. It only states that he resigned from his position as Chief Financial Officer.

David Wells has been with Netflix since March 2004. Prior to his CFO appointment, he served as Vice President of Finance Planning and Analysis since August 2008. He also has prior consulting experience at Deloitte Consulting.

David Wells will receive a total annual compensation of $750,000. He has elected to receive $250,000 of this amount in the form of stock options through the company's monthly grant program.

As a beneficiary of the Amended and Restated Executive Severance and Retention Incentive Plan, David Wells is entitled to a severance benefit upon termination (excluding cause, death, or disability). This benefit consists of a lump sum cash payment equal to nine months of his base pay and nine months of the cash equivalent of his stock option allowance.