The co-founder of the streaming behemoth, Reed Hastings, has stepped down from his role as co-CEO of Netflix, which he has held for over 25 years.
Hastings stated in a blog post for the business that he will now serve as executive chairman and that Greg Peters will advance from COO to co-CEO with Ted Sanders. Netflix is run by two CEOs.
“Starting today, Greg Peters will step up from COO to become Ted’s co-CEO. Going forward, I’ll be serving as Executive Chairman, a role that founders often take (Jeff Bezos, Bill Gates, etc.) after they pass the CEO baton to others. Ted, Greg, and I have been working closely together in different capacities for 15 years. As is common in long, effective relationships, we’ve all learned how to bring out the best in each other. I look forward to working with them in this role for many years to come.”
The announcement helped boost the company’s share price by about 6%.
The shift will take effect as Netflix deals with rising competition from companies like Hulu, Disney, and Amazon that have entered the lucrative streaming market.
As a result of investors’ response to a stagnation in Netflix’s membership growth despite rising competition, the company’s valuation has decreased by approximately a third in the past year.
Hastings retracted his statement in response, abandoning a long-standing policy of never permitting advertising. To draw in more value-driven clients, the business unveiled a new layer of advertising in November.
In an SEC filing, the business said that co-CEO Greg Peters would earn an annual salary of $3 million, an annual stock option allocation of $17.325 million, and an anticipated target bonus of $14.325 million as part of the executive remuneration. Peters also joins the board.
As executive chairman, Hastings will receive an annual salary of $500,000 with no target bonus, and a stock option allocation of $2.5M.