8-KLeadership ChangesExhibits & Filings

NETFLIX INC 8-K Report, Executive Changes (Jan 7, 2019)

Filed January 7, 2019For Securities:NFLX

Summary

Netflix, Inc. (NFLX) announced a significant leadership change in its finance department through an 8-K filing on January 7, 2019. The company appointed Spencer Neumann as its new Chief Financial Officer (CFO), effective January 7, 2019. Mr. Neumann brings extensive experience from leadership roles at Activision Blizzard and The Walt Disney Company, including his most recent position as CFO at Activision Blizzard. This transition marks the departure of David Wells as CFO, who will remain with the company for a short transition period. The filing also details Mr. Neumann's compensation package, which includes a substantial base salary, stock options, and a one-time payment. His compensation structure, particularly the fully vested and immediately exercisable stock options, reflects the company's approach to executive incentives. Furthermore, Mr. Neumann will be covered by the company's executive severance and retention plan, which provides specific benefits upon termination under certain conditions, and also has an indemnification agreement in place.

Key Highlights

  • 1Appointment of Spencer Neumann as Chief Financial Officer (CFO) effective January 7, 2019.
  • 2Spencer Neumann's prior experience includes CFO at Activision Blizzard and various senior finance roles at The Walt Disney Company.
  • 3David Wells is stepping down as CFO on January 7, 2019, but will stay for a transition period.
  • 4Mr. Neumann's compensation package includes a $5,000,000 salary and a $5,000,000 annual stock option allowance.
  • 5Stock options granted to Mr. Neumann are fully vested upon grant and immediately exercisable.
  • 6Mr. Neumann is eligible for a one-time payment of $1.7 million.
  • 7The new CFO will be a beneficiary of Netflix's executive severance and retention plan, with specific terms for newly hired executives.

Frequently Asked Questions

Spencer Neumann has been appointed as the new Chief Financial Officer (CFO) of Netflix, Inc., effective January 7, 2019.

Mr. Neumann has a strong financial background, most recently serving as the Chief Financial Officer of Activision Blizzard Inc. Prior to that, he held several senior finance positions at The Walt Disney Company and worked at private equity firms Providence Equity Partners and Summit Partners.

Mr. Neumann will receive a base salary of $5,000,000 and an annual stock option allowance of $5,000,000. He will also receive a one-time payment of $1.7 million. His stock options are fully vested upon grant and immediately exercisable.

David Wells will cease acting as CFO on January 7, 2019, but will remain with the company for a brief transition period to ensure a smooth handover.