David Zaslav, the chief executive of Warner Bros. Discovery, received $49.7 million in compensation in 2023, a 26 percent increase from the previous year. Despite this increase, the company’s financials are not favorable, with losses totaling $3 billion, although this was an improvement from the previous year. Shareholders have also expressed concern over Mr. Zaslav’s pay, with only 50.8 percent approving of the $39.3 million he received in 2022.
For 2023, Warner Bros. Discovery’s board adjusted compensation structures for top executives, tying bonuses more to free cash flow generation rather than stock price. The company saw a significant increase in free cash flow to $6.2 billion, primarily due to improved financials in its streaming division and savings from Hollywood union strikes. This allowed Warner Bros. Discovery to reduce its total debt by 11 percent to $44.2 billion in 2023.
Mr. Zaslav’s 2023 compensation included a $3 million base salary, long-term stock awards of $23 million, and $22 million in cash related to his role in the merger of Discovery and WarnerMedia. Despite challenges such as changing advertising landscapes and competition from tech companies, Warner Bros. Discovery praised Mr. Zaslav’s leadership and strategic achievements. Other top executives at the company also received significant raises.
Comparatively, other media chief executives like Disney’s Robert A. Iger, Netflix’s Ted Sarandos, and Paramount Global’s Bob Bakish had varied compensation packages in 2023. These high pay packages have been criticized amidst industry challenges, with concerns raised during union strikes in response to the millions given to CEOs while layoffs and cost-cutting measures were implemented across the industry.
Despite the financial challenges faced by Warner Bros. Discovery and the broader entertainment industry, Mr. Zaslav and his team have taken aggressive cost-cutting measures, including shelving projects like “Batgirl” and “Coyote vs. Acme.” In a statement, Mr. Zaslav emphasized the company’s approach of having no “sacred cows” when it comes to making difficult decisions in response to industry shifts and financial constraints.
Overall, while Mr. Zaslav’s compensation saw a significant increse in 2023, driven by restructuring of executive bonuses tied to free cash flow generation, Warner Bros. Discovery remains amid financial challenges and a shifting media landscape. The discrepancy between executive pay and industry struggles has raised concerns among shareholders and industry stakeholders, prompting discussions and criticisms regarding compensation practices in the entertainment sector.
