Shareholders of Warner Bros. declined to award the CEO a $52 million compensation package.
Now Here's the Deal:
Looks like shareholders didn't go for the optional pay of top execs at the company in 2024, according to the docs. A whopping 1.06 billion shares of Warner Bros. Discovery voted against it, while only 724 million were in favor.
But don't go thinking this non-binding vote threatened the company's financial stability just yet. Variety reports that the board values their shareholders' opinions, regardless of the vote results. Financial Times (FT) clarified that these results ain't the boss of them.
Warner Bros. Discovery's big cheese, David Zaslav, raked in $51.9 million last year, a 4% bump from his 2023 pay of $49.7 million. Compare that to his 2022 earnings of $39.3 million, and you can see where the talk about excessive exec pay is coming from.
A few months later, in April 2025, the company's comp committee hailed Zaslav and financial director, Gunnar Widenfalk, for knocking their strategic goals outta the park. The committee gave 'em hefty bonuses, with Zaslav bagging 115% of his target bonus and Widenfalk 114%.
Since the 2022 merger of WarnerMedia with Discovery Inc., shares of Warner Bros. Discovery have taken a tumble, falling some 60%. FT reports that S&P Global downgraded the company's credit rating from BBB- to BB+ in May due to the decline in Warner Bros. Discovery's financial performance. The company's Q1 2025 report shows a 10% drop in revenue, to $8.98 billion, and a 27% drop in content revenues, to $1.87 billion.
And here's some extra juice for ya: The shareholder vote, while symbolic, might not have a direct impact on the company's financial performance or credit rating. But, it could sway future executive pay discussions via conversations between the company and the investors. Warner Bros. Discovery has been wrestling with financial challenges, like cable subscription declines and a restructuring plan, which are likely the real drivers of the stock decline rather than the shareholder vote itself.
As for the credit rating, the immediate impact of the shareholder vote is unlikely to be massive, as credit ratings usually rely on broader financial indicators and stability markers instead of shareholder votes on executive compensation. Nevertheless, persistent concerns about exec pay could potentially affect investor confidence and, ultimately, impact the company's long-term financial health and creditworthiness indirectly.
So, while the shareholder vote doesn't directly affect the company's bottom line, it could influence the company's future decisions on executive pay and impact investor confidence indirectly. Stay tuned for more on this.
Categories: Business USA Entertainment Industry
Source: Variety Financial Times Warner Bros. Discovery's official statement Enrichment Data
Business conversations surrounding executive pay at Warner Bros. Discovery could be influenced by the recent shareholder vote, potentially shaping future decisions. Investors may consider the financial implications of such decisions when investing in the company.
