8-KShareholder Matters

NETFLIX INC 8-K Report, Shareholder Vote Results (Jun 7, 2011)

Filed June 7, 2011For Securities:NFLX

Summary

This 8-K filing from Netflix, Inc. reports on the outcomes of its Annual Meeting of Shareholders held on June 3, 2011. The primary purpose of the meeting was for shareholders to vote on several key proposals, including the election of directors, ratification of the independent auditor, approval of the 2011 Stock Plan, and advisory votes on executive compensation and its frequency, as well as a stockholder proposal regarding majority voting. Investors will be interested to note that all director nominees were elected, and the appointment of KPMG LLP as the independent auditor was ratified. The 2011 Stock Plan was also approved by shareholders. Furthermore, shareholders provided a non-binding advisory vote in favor of the executive officer compensation and advised that they prefer an annual advisory vote on executive compensation, which Netflix has committed to include in future proxy statements until the next frequency vote. The stockholder proposal for majority voting also passed, indicating a shareholder desire for more robust corporate governance practices.

Key Highlights

  • 1Netflix held its Annual Meeting of Shareholders on June 3, 2011, with a quorum present.
  • 2All three nominated Class III directors, including Reed Hastings, Jay C. Hoag, and A. George (Skip) Battle, were duly elected.
  • 3KPMG LLP was ratified as Netflix's independent registered public accounting firm for the fiscal year ending December 31, 2011.
  • 4The 2011 Stock Plan was approved by the shareholders.
  • 5A non-binding advisory vote on executive compensation was passed, with shareholders indicating their approval of the compensation as presented.
  • 6Shareholders voted for an annual advisory vote on executive compensation frequency.
  • 7A stockholder proposal regarding majority voting was approved.

Frequently Asked Questions

The main outcomes were the election of three directors, the ratification of KPMG LLP as the independent auditor, the approval of the 2011 Stock Plan, and the passage of advisory votes in favor of executive compensation and an annual frequency for such votes. A shareholder proposal for majority voting was also approved.

Yes, shareholders provided a non-binding advisory vote in favor of the executive officer compensation as presented. They also advised that they prefer an annual frequency for advisory votes on executive compensation, a practice Netflix has agreed to implement.

The shareholder proposal regarding majority voting was approved by the shareholders, indicating a desire for enhanced governance practices where director nominees would need to receive a majority of votes cast to be elected.

KPMG LLP was ratified as the independent registered public accounting firm for Netflix for the year ending December 31, 2011.