8-KLeadership Changes

NETFLIX INC 8-K Report, Executive Changes (Jan 9, 2023)

Filed January 9, 2023For Securities:NFLX

Summary

Netflix, Inc. (NFLX) announced a key executive appointment in its filing on January 9, 2023. Jeffrey Karbowski has been appointed as the new Principal Accounting Officer and VP, Chief Accounting Officer, effective February 13, 2023. Mr. Karbowski brings extensive experience from his previous roles at PayPal Holdings, Inc., where he served as VP, Chief Accounting Officer, and prior experience at Skype and Ernst & Young. This appointment is significant for financial reporting oversight and investor confidence, especially given his background as a certified public accountant. Mr. Karbowski's compensation package includes a base salary of $2,000,000, a $400,000 signing bonus, and a $1,000,000 annual stock option allowance. The stock options are fully vested upon grant and have a 10-year exercise period, with terms defined by the Company's 2020 Stock Plan. Additionally, he will be covered under the Company's executive severance and retention incentive plan, which provides for a 36-month allocatable compensation payment for newly hired executives upon qualifying termination, subject to certain conditions. The company has also entered into a standard indemnification agreement with Mr. Karbowski.

Key Highlights

  • 1Netflix appointed Jeffrey Karbowski as Principal Accounting Officer and VP, Chief Accounting Officer, effective February 13, 2023.
  • 2Mr. Karbowski has a strong background in accounting and finance, with prior roles at PayPal Holdings, Inc., Skype, and Ernst & Young.
  • 3His compensation package includes a significant base salary ($2,000,000), a signing bonus ($400,000), and substantial stock options ($1,000,000 annual allowance).
  • 4Stock options granted to Mr. Karbowski are fully vested upon grant and exercisable for up to 10 years.
  • 5Mr. Karbowski is eligible for an executive severance benefit, including a potential 36-month payout for newly hired executives under specific termination conditions.
  • 6The appointment is routine and does not involve any undisclosed arrangements or related-party transactions.
  • 7A standard indemnification agreement has been put in place between Netflix and Mr. Karbowski.

Frequently Asked Questions

Jeffrey Karbowski has been appointed as Netflix's Principal Accounting Officer and VP, Chief Accounting Officer, effective February 13, 2023. He is a certified public accountant with extensive experience, most recently serving as VP, Chief Accounting Officer at PayPal Holdings, Inc.

Mr. Karbowski will receive an annual base salary of $2,000,000, a one-time signing bonus of $400,000, and an annual stock option allowance of $1,000,000. His stock options are fully vested upon grant and can be exercised for up to 10 years.

As a newly hired executive, Mr. Karbowski is eligible for a severance benefit under Netflix's plan. This includes a cash payment equal to 36 months of allocatable compensation upon a qualifying termination, subject to reduction based on tenure, with a minimum benefit of 12 months' compensation.

No, the filing states there are no undisclosed arrangements or understandings regarding his selection, nor are there any family relationships or transactions requiring disclosure under SEC regulations.