Reed Hastings' New Pay Package

Reed Hastings' New Pay Package

Netflix CEO Reed Hastings received a hefty 50% pay raise for 2014, which brings his total compensation to a cool $6 million.

In the video below, Fool contributor Demitrios Kalogeropoulos breaks down that new package, noting that Hastings is now receiving a bigger percentage of his pay from guaranteed salary, as opposed to stock options. Yet his incentives are well aligned with long-term shareholders, Demitrios argues, as Hastings remains one of the company's biggest owners.

The raise also seems well deserved given Netflix's results over the last year: The streaming video pioneer added 10 million subscribers in the last four quarters. And that boost, which came as profitability spiked higher last year, was driven in part by Hastings' smart bet on exclusive original content such as House of Cards and Orange Is the New Black.

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Fool contributor Demitrios Kalogeropoulos owns shares of Netflix. The Motley Fool recommends Netflix. The Motley Fool owns shares of Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Originally published