Mutiny at CNN's parent company as fat cat CEO who tore up network is shunned by shareholders

Daily Mail​

2 days ago

Shareholders of CNN parent company Warner Bros. Discovery voted to reject CEO David Zaslav's eye-popping $52million pay package at the company's annual meeting this week.
The media giant disclosed Tuesday in regulatory filing that nearly 60 percent of its shareholders voted to reject the package, which included $3million in salary, $23.1million in stock, $23.9million in non-equity incentive plan compensation and $1.92million for things like a car allowance and personal security.
Warner Bros. Discovery's board of directors had recommended that shareholders vote the other way, but the appeal didn't sway them.
The votes comes after sweeping layoffs at both CNN and Warner Bros. Discovery during Zaslav's tenure.
The CEO and his chief financial officer, Gunnar Wiedenfels, have managed to reduce Warner Bros. Discovery's $55billion debt by some $21 billion, while asking employees to make sacrifices over the past three years.
Meanwhile, the median Warner Bros. Discovery staffer makes an average annual total compensation of $130,316 - about one four-hundredth what Zaslav was set to earn.
The decision does not necessarily mean Warner Bros. Discovery will scale back his pay, but it could light a fire under those calling the shots.
Netflix, for instance, decided to cap its co-CEOs base salaries after a similar vote in 2023. If Warner Bros. Discovery follows suit, Zaslav could be subject to a cap as well.
The company said in a statement that it was taking the development 'seriously,' after more than 1billion shareholders voted to reject the package.
'The Warner Bros. Discovery Board of Directors appreciates the views of all its shareholders and takes the results of the annual advisory vote on executive compensation seriously,' it read.
'The Compensation Committee of the Board looks forward to continuing its regular practice of engaging in constructive dialogue with our shareholders.'
The the statement came a year after Zaslav saw his compensation swell by nearly five percent from 2023 to 2024.
Other execs' pay packages - including Wiedenfels' - were also rejected, five months after CNN laid off 200 workers from its struggling TV division.
At the time, a CNN source told the Daily Mail that the division had become 'bloated' and overstaffed with people who do the bare minimum, following Warner Bros. massive merger with Discovery three years ago.
Since then, Zaslav and Wiedenfels have engaged in a cost-cutting campaign that's done little to help the conglomerate's share price, which is down 7 percent year to date.
The move could see CNN spearhead a new, cable-centering company as Zaslav's eyes and ears at the network, CEO Mark Thompson, continues to preach the idea of a more digital future
Last month, CNBC reported that Warner Bros. Discovery is mulling a separation of its linear networks from its studio and streaming assets, much like Comcast has done with MSNBC and CNBC.
The move could see CNN spearhead a new, cable-centering company as Zaslav's eyes and ears at the network, CEO Mark Thompson, continues to preach the idea of a more digital future.
The talks, first reported by CNBC, come after a dip in share price from the conglomerate and a quarterly review that fell short of estimates.
The report showed revenue down 1 percent from the same span last year and net income down 62 percent
CNBC's David Faber reported that the talks came after a dip in share price from the conglomerate that caused a stir from investors.
Just months ago, Zaslav reportedly dismissed the move as a bad idea. That was before a quarterly review that fell short of estimates.
Earlier this year, NBC parent Comcast announced it would spin off most of its cable networks into a separate company after years of hindrance on its own share price.
If WBD does, too, properties like CNN, TNT, and TBS will no longer fall under its jurisdiction. The new, yet-to-be announced firm would also be ripe for acquisition.