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A majority of Warner Bros Discovery shareholders voted against the 2024 salary package of CEO David Zaslav, which was a place where pay was painful for investors amid a sharp decline in the media group’s stock price.
A regulatory filing, published Tuesday, showed that a majority of shareholders rejected Zaslav’s $52 million package with 1,063,214,128 to 724,453,004 votes. This movement is primarily symbolic because it is unbound.
The Warner Bros Discovery Committee said in a statement that it “takes the results of the annual advisory vote on executive compensation seriously.”
Zaslav received higher wages than its counterparts in large entertainment groups last year, including Disney’s CEO Bob Iger, who was paid $41 million last year, and Comcast’s CEO Brian Roberts, who received $34 million.
Zaslav’s salary has been attracting criticism since it was awarded a package worth $247 million in stock options in 2021. Some investors also criticised the board’s decision in 2023, adjusting their pay plan to meet cash flow targets instead of stock targets.
Warner Bros Discovery stock has fallen almost 60% since the company was formed in a 2022 merger as the cable television business faces a sharp decline. Zaslav and Chief Financial Officer Gunnar Wiedenfels are focused on reducing debt load.
However, S&P Global reduced its credit rating at Warner Bros Discover last month to BB-Plus, citing a decline in revenue and cash flows in its TV business.
In December, Warner Bros Discovery was rebuilt into two divisions. One will hold traditional television business, the other will run streaming and studio business. “We believe the market value of Warner Bros Discovery’s studios and streaming assets could well exceed the market capitalization of today’s companies,” writes Ehrlich.
Companies that hold cable assets, including CNN and Cartoon Network, will focus on reducing debt and generating cash.
Rival NBCuniversal is planning to spin off its cable channels, including CNBC, into a new list group called Versant later this year.
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Warner Bros Discovery’s studio and streaming business have recently been making box office revenues, including Minecraft Movie and streaming shows such as Sinners, White Lotus and Hacks. However, that cable channel continues to lose ground. Warner Bros Discovery missed a Wall Street estimate last month and reported greater losses than expected.
In a call with investors last month, Zaslav declined to comment when asked if the company could follow NBCuniversal’s lead when spin-off from the cable unit. “If you decide to change, you can move right away,” he said.
