WB Offers Cash Bonus to Executives After Netflix Deal Completion
Netflix’s recent acquisition of Warner Bros. for $82.7 billion marks a significant shift in the entertainment landscape. However, the completion of this deal is expected to take between 12 to 18 months, leaving Warner Bros. Discovery (WBD) executives in a transitional phase.
Executive Incentives Amid Uncertainty
To navigate this uncertain period, Warner Bros. has introduced a new transaction bonus plan. This plan aims to retain key executives as the company undergoes a lengthy regulatory review process. A fund of $38.7 million will be available for designated employees who remain with the company until Netflix finalizes the acquisition.
- The bonus plan recognizes the contributions of selected key employees, excluding the Chief Executive Officer.
- It aims to ensure continued employment through the merger and the separation of certain assets.
Separation and Spin-Off Details
As part of the restructuring, Warner Bros. cable networks—including CNN, TNT Sports, and HGTV—will be transitioned to a newly formed entity, Discovery Global, led by Gunnar Weidenfels. This transition is expected to occur by the third quarter of the following year.
Employees supporting the spin-off will also be eligible for incentives. Award amounts can reach up to 150% of an individual’s base salary, contingent on their continued employment until the merger’s completion.
Key Executives and Their Compensations
Several top executives have seen substantial compensation packages. Although David Zaslav earned $51.9 million last year, he will not participate in the new bonus plan. His pay structure was adjusted following the announcement of the company’s sale.
- Gunnar Weidenfels: $17 million
- Bruce Campbell: $19.7 million
- JB Perrette: $19.7 million
- Gerhard Zeiler: $14.8 million
Comparative Analysis: Paramount’s C-Suite
A similar situation unfolded at Paramount Global, which was acquired by Skydance Media. As that deal closed, several top executives were eligible for significant bonuses due to their termination. Brian Robbins and Chris McCarthy, for instance, received $21.8 million and $18.6 million, respectively.
The Future of Warner Bros. and HBO Max
As Netflix prepares for this major acquisition, questions remain about the future of brands like HBO Max. During a conference call, Netflix co-chief Greg Peters acknowledged the value of the HBO brand but refrained from confirming its status as a standalone service.
Addressing regulatory hurdles, Netflix executives expressed confidence in securing the necessary approvals for the acquisition. They emphasized that the deal is strategically favorable for consumers and creators alike.
In summary, the upcoming merger poses both opportunities and challenges for Warner Bros. Discovery. Retaining top executives through incentives will be critical in ensuring stability during this transition.
