Warner Bros. Discovery CEO’s Pay Increase Sparks Shareholder Backlash

NEW YORK, NY — Warner Bros. Discovery (WBD) faced scrutiny from shareholders after CEO David Zaslav received a pay increase despite the company’s financial struggles in 2024. Revenue fell 4.8% to $39.3 billion, resulting in a staggering $11.5 billion net loss, largely due to a goodwill impairment charge of $9.1 billion.

At the company’s annual stockholders meeting on June 2, nearly 60% of votes cast opposed the advisory measure to approve Zaslav’s 2024 compensation package, which totaled $51.9 million. This package included a $23.9 million cash bonus and $23.1 million in performance-based restricted stock grants. The total represented a 4.4% increase over the previous year.

WBD justified Zaslav’s pay by stating that he achieved significant operational goals. According to the company, he qualified for a 108.6% payout of his cash bonus target and 200% for his stock grants based on performance metrics that included adjusted EBITDA and paid streaming subscribers. WBD ended 2024 with 116.9 million streaming subscribers, exceeding their target.

The compensation committee highlighted Zaslav’s success in achieving $1.8 billion in cost savings and improving relationships with the NBA, allowing WBD to retain valuable international broadcasting rights. However, shareholder sentiment was clearly against executive pay increases during challenging financial times.

In response to the backlash, WBD’s board affirmed its commitment to constructive dialogue with shareholders regarding compensation structures. The company’s proxy statement revealed that they plan to adjust compensation metrics to align pay more closely with company performance in the future.