David Zaslav faces salary after WBD split

Warner Bros. Next year, Discovery will be divided into two companies and will pay personal fees for CEO David Zaslav. Media and entertainment giants enter a new one on June 12 The compensation agreement with Zaslav will reduce its future bonus and stock grants targets. The new compensation plan responds to shareholders’ concerns about excessive executive compensation and reflects Hollywood’s broad shift to performance-based compensation.
“We address shareholder feedback by promoting consistent performance, ensuring industry-standard compensation structures, and inspiring the success of two new leading media companies and the contribution of shareholder value creators,” WBD Chairman Samuel A. Di Piazza said in a statement.
Next year, WBD will Split Split into two publicly traded companies – one focusing on wired networks such as CNN, TNT Sports and Discovery, and the other focusing on streaming services and studios. Zaslav will lead streaming and Studios spin-offs, including HBO Max, Warner Bros. Film Group and DC Studios.
Zaslav is one of Hollywood's highest-paid CEOs. Since WBD was made up through Warnermedia and Discovery Inc. three years ago, he has been receiving top-level compensation –$51.9 million in 2024, It was $49.7 million in 2023 and $39.3 million in 2022, even though the company's share price has fallen by 60% since the merger.
Zaslav's $51.9 million in revenue last year include:
- $3 million in basic salary
- $23.9 million bonus
- $23.1 million in stock rewards
- $1.9 million in other benefits and allowances
Under the new compensation plan, Zaslav's salary will include:
- $3 million in basic salary
- Target annual bonus is $6 million (up to $12 million)
- Target stock awards for the first year $15.5 million, which has since dropped to $7.5 million each year
He will also be eligible for a special multi-year stock option grant of up to 20.9 million shares of the newly formed company, with 40% vesting over time and the remaining 60% relating to specific stock price milestones.
Has Zaslav really cut his salary?
Even with a lower bonus target in his new compensation package, Zaslav can still match (or even exceed) his 2024 payment if certain conditions are met: He received all $12 million in bonuses, all $15.5 million in stock rewards, and saw 20.9 million stock options closely related to postal entertainment company Soar.
At the best case scenario where Zaslav reaches all performance milestones, these stock options alone are worth tens of millions. According to the Wall Street Journal, if the target is achieved, they could be worth as much as $150 million.
Call it a salary cut if you want, but Zaslav will still be one of the highest paid CEOs in the U.S. (For context, the median S&P 500 S&P 500 CEO is about $17.1 million in 2024.)