Latest news with #TedSarandos
CTV News
4 days ago
- Business
- CTV News
CEO pay rose nearly 10% in 2024 as stock prices and profits soared
Ted Sarandos arrives at the premiere of "The Electric State" on Monday, Feb. 24, 2025, at The Egyptian Theatre in Los Angeles. (Photo by Jordan Strauss/Invision/AP, File) The typical compensation package for chief executives who run companies in the S&P 500 jumped nearly 10 per cent in 2024 as the stock market enjoyed another banner year and corporate profits rose sharply. Many companies have heeded calls from shareholders to tie CEO compensation more closely to performance. As a result, a large proportion of pay packages consist of stock awards, which the CEO often can't cash in for years, if at all, unless the company meets certain targets, typically a higher stock price or market value or improved operating profits. The Associated Press' CEO compensation survey, which uses data analyzed for The AP by Equilar, included pay data for 344 executives at S&P 500 companies who have served at least two full consecutive fiscal years at their companies, which filed proxy statements between Jan. 1 and April 30. Here are the key takeaways from the survey: A good year at the top The median pay package for CEOs rose to $17.1 million, up 9.7 per cent. Meanwhile, the median employee at companies in the survey earned $85,419, reflecting a 1.7 per cent increase year over year. CEOs had to navigate sticky inflation and relatively high interest rates last year, as well as declining consumer confidence. But the economy also provided some tail winds: Consumers kept spending despite their misgivings about the economy; inflation did subside somewhat; the Fed lowered interest rates; and the job market stayed strong. The stock market's main benchmark, the S&P 500, rose more than 23 per cent last year. Profits for companies in the index rose more than 9 per cent. '2024 was expected to be a strong year, so the (nearly) 10% increases are commensurate with the timing of the pay decisions,' said Dan Laddin, a partner at Compensation Advisory Partners. Sarah Anderson, who directs the Global Economy Project at the progressive Institute for Policy Studies, said there have been some recent 'long-overdue' increases in worker pay, especially for those at the bottom of the wage scale. But she said too many workers in the world's richest countries still struggle to pay their bills. The top earners Rick Smith, the founder and CEO of Axon Enterprises, topped the survey with a pay package valued at $164.5 million. Axon, which makes Taser stun guns and body cameras, saw revenue grow more than 30 per cent for three straight years and posted record annual net income of $377 million in 2024. Axon's shares more than doubled last year after rising more than 50 per cent in 2023. Almost all of Smith's pay package consists of stock awards, which he can only receive if the company meets targets tied to its stock price and operations for the period from 2024 to 2030. Companies are required to assign a value to the stock awards when they are granted. Other top earners in the survey include Lawrence Culp, CEO of what is now GE Aerospac e ($87.4 million), Tim Cook at Apple ($74.6 million), David Gitlin at Carrier Global ($65.6 million) and Ted Sarandos at Netflix ($61.9 million). The bulk of those pay packages consisted of stock or options awards. The median stock award rose almost 15 per cent last year compared to a 4 per cent increase in base salaries, according to Equilar. 'For CEOs, target long-term incentives consistently increase more each year than salaries or bonuses,' said Melissa Burek, also a partner at Compensation Advisory Partners. 'Given the significant role that long-term incentives play in executive pay, this trend makes sense.' Jackie Cook at Morningstar Sustainalytics said the benefit of tying CEO pay to performance is 'that share-based pay appears to provide a clear market signal that most shareholders care about.' But she notes that the greater use of share-based pay has led to a 'phenomenal rise' in CEO compensation 'tracking recent years' market performance,' which has 'widened the pay gap within workplaces.' Some well-known billionaire CEOs are low in the AP survey. Warren Buffett's compensation was valued at $405,000, about five times what a worker at Berkshire Hathaway makes. According to Tesla's proxy, Elon Musk received no compensation for 2024, but in 2018 he was awarded a multiyear package that has been valued at $56 billion and is the subject of a court battle. Other notable CEOs didn't meet the criteria for inclusion the survey. Starbucks' Brian Niccol received a pay package valued at $95.8 million, but he only took over as CEO on Sept. 9. Nvidia's Jensen Huang saw his compensation grow to $49.9 million, but the company filed its proxy after April 30. The pay gap At half the companies in AP's annual pay survey, it would take the worker at the middle of the company's pay scale 192 years to make what the CEO did in one. Companies have been required to disclose this so-called pay ratio since 2018. The pay ratio tends to be highest at companies in industries where wages are typically low. For instance, at cruise line company Carnival Corp., its CEO earned nearly 1,300 times the median pay of $16,900 for its workers. McDonald's CEO makes about 1,000 times what a worker making the company's median pay does. Both companies have operations that span numerous countries. Overall, wages and benefits netted by private-sector workers in the U.S. rose 3.6% through 2024, according to the Labor Department. The average worker in the U.S. makes $65,460 a year. That figure rises to $92,000 when benefits such as health care and other insurance are included. 'With CEO pay continuing to climb, we still have an enormous problem with excessive pay gaps,' Anderson said. 'These huge disparities are not only unfair to lower-level workers who are making significant contributions to company value – they also undercut enterprise effectiveness by lowering employee morale and boosting turnover rates.' Some gains for female CEOs For the 27 women who made the AP survey — the highest number dating back to 2014 — median pay rose 10.7 per cent to $20 million. That compares to a 9.7 pre cent increase to $16.8 million for their male counterparts. The highest earner among female CEOs was Judith Marks of Otis Worldwide, with a pay package valued at $42.1 million. The company, known for its elevators and escalators, has had operating profit above $2 billion for four straight years. About $35 million of Marks' compensations was in the form of stock awards. Other top earners among female CEOs were Jane Fraser of Citigroup ($31.1 million), Lisa Su of Advanced Micro Devices ($31 million), Mary Barra at General Motors ($29.5 million) and Laura Alber at Williams-Sonoma ($27.7 million). Christy Glass, a professor of sociology at Utah State University who studies equity, inclusion and leadership, said while there may be a few more women on the top paid CEO list, overall equity trends are stagnating, particularly as companies cut back on DEI programs. 'There are maybe a couple more names on the list, but we're really not moving the needle significantly,' she said. Prioritizing security Equilar found that a larger number of companies are offering security perquisites as part of executive compensation packages, possibly in reaction to the December shooting of UnitedHealthCare CEO Brian Thompson. Equilar said an analysis of 208 companies in the S&P 500 that filed proxy statements by April 2 showed that the median spending on security rose to $94,276 last year from $69,180 in 2023. Among the companies that increased their security perks were Centene, which provides health care services to Medicare and Medicaid, and the chipmaker Intel. __ Reporters Matt Ott and Chris Rugaber in Washington contributed. Mae Anderson And Paul Harloff, The Associated Press
Globe and Mail
4 days ago
- Business
- Globe and Mail
2 Underrated Artificial Intelligence (AI) Stocks to Buy and Hold
By now, most investors are familiar with some of the biggest names in the artificial intelligence (AI) game, with Nvidia arguably being the company that has benefited the most from the industry's recent explosion. Other tech leaders like Alphabet, Microsoft, and Amazon quickly started offering AI-based cloud services and are already seeing tangible results from their efforts. We could name several others, but two stocks most wouldn't think of as leading AI companies are Netflix (NASDAQ: NFLX) and Apple (NASDAQ: AAPL). Both are among the most prominent corporations on Wall Street, but not so much in the more specific AI niche. And although they aren't cashing in as much as some of their tech peers from the AI boom, Netflix and Apple should, eventually, benefit from AI. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » That's one more reason both these companies are worth investing in today. 1. Netflix Generative AI can simplify and speed up many tasks, including content production. It's easy to see the potential for Netflix, whose content strategy is integral to its success. Netflix's creations have attracted millions of viewers and won many awards. However, management is being careful with how it approaches the use of AI. The company's CEO, Ted Sarandos, talked about making movies 10% better in response to an analyst's question during the first-quarter earnings conference call. Sarandos pointed out that special effects that would have previously been prohibitively expensive are now accessible on a budget, thanks to AI. So, Netflix can make better movies for less, allowing it to control content production costs in the long run. It won't make much difference over a quarter or even a year, but as Netflix implements this strategy, it should eventually benefit its bottom line and free cash flow. That's especially the case as better movies help attract more viewers and engagement. Netflix's basic strategy won't change. AI will only allow it to better do the things it already does, and investors should be excited about that, considering how much growth remains in the streaming industry. True, plenty of competition exists, especially from free or cheap ad-supported streaming services. More will pop up in the future. However, Netflix has adapted to this new environment. It also offers a cheaper ad-supported subscription option. Furthermore, Netflix has a strong economic moat due to its brand name and network effect, since it has access to data that allows it to steer its content production strategy in a way that makes its platform more valuable. Netflix recently estimated a $650 billion opportunity. Its trailing 12-month revenue is just $40.2 billion. Here's another way to look at the massive addressable market for Netflix. It commands less than 10% of television viewing time among its connected households. As Netflix's engagement grows, expect the company to deliver better financial results and superior returns over the long run. AI won't be the main reason why, but it should help. 2. Apple Apple has faced significant headwinds this year. President Donald Trump's trade policies could significantly increase the company's costs, especially since Apple manufactures most of its products in China, which has been Trump's favorite tariff target. The U.S. and China recently reached a trade deal. Plans for exorbitant tariffs are on hold, though the recent deal features less steep duties on Chinese imported goods. These headwinds have overshadowed every other aspect of Apple's business, including its quiet AI strategy. The company announced Apple Intelligence -- a suite of AI features, especially on its latest iPhones -- just last year. It is still working on introducing many of these features, but this could help lead to a robust cycle of renewals in the next few years. That means stronger revenue growth. Apple internally developed its own large language model to run its Apple Intelligence. The company will likely continue upgrading the technology. There is a somewhat speculative reason to focus on, too. Apple is usually not the first to market with its devices or technologies. The iPhone wasn't the first smartphone. The Apple Watch was not the first smart watch, nor were the company's AirPods the first earbuds. These devices became hugely popular because Apple put its own spin on existing technologies and used its incredibly valuable brand name as a marketing tool. Apple has yet to figure out AI, but in my view, the smart money is on the company doing so eventually. And there are other reasons to consider the stock, none more important than the company's services segment. Apple has over 2 billion devices in circulation and over a billion paid subscriptions. It has historically introduced new monetization plans, and it will do so again in the future. Apple's services segment still made up just 28% of its revenue as of the second quarter of its fiscal 2025, ended March 29. That number should grow over time and help boost the bottom line, since services carry far higher margins. Regarding Apple's manufacturing problem, the company has the financial flexibility to shift its production elsewhere, including in the U.S. It recently announced a $500 billion investment initiative in the country that will partly shore up local manufacturing capacity. So, despite recent headwinds, Apple's AI initiatives, services segment, strong brand name, and still massively popular devices make the stock a buy. Should you invest $1,000 in Netflix right now? Before you buy stock in Netflix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to170%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Prosper Junior Bakiny has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, Netflix, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Express Tribune
6 days ago
- Entertainment
- Express Tribune
'Lilo & Stitch' and 'Mission: Impossible – The Final Reckoning ' break memorial day box office records
Just weeks after Netflix co-CEO Ted Sarandos labelled theatres 'outdated,' moviegoers have made a clear statement with their wallets. Over Memorial Day weekend, Lilo & Stitch and Mission: Impossible – The Final Reckoning drove the domestic box office to a historic $322 million, making it the highest-grossing Memorial Day weekend in history. Lilo & Stitch soared with a $183 million domestic debut and $341.7 million globally, becoming one of Disney's biggest live-action openings. Meanwhile, Mission: Impossible earned $77 million in the U.S. and $204 million globally, setting a franchise record and reinforcing Tom Cruise's draw. Industry analyst Paul Dergarabedian noted, 'This weekend shows the essential nature of the moviegoing experience,' pointing to a renewed interest in theatrical releases post-strikes. The success was fuelled by smart counter-programming, with Lilo & Stitch drawing families and younger audiences, and Mission: Impossible appealing to action fans and older moviegoers. With streaming also going strong, Hollywood's bet on summer 2025 has paid off early, forecasting a possible $4.2 billion domestic season.
The Sun
24-05-2025
- Business
- The Sun
Fresh sign Harry and Meghan have split professionally as details of Duchess' new Netflix deal revealed
MEGHAN is set to land a Netflix deal for a third series of her lifestyle show — but Prince Harry will not be in it. The TV streaming giant's boss Ted Sarandos plans to feature only the duchess — and he even calls her the 'rock star', sources say. Despite her With Love, Meghan series being savaged by reviewers, it will be recommissioned for a third run, to be shown next year. The second series — with no Harry or their children Archie, six, and Lilibet, three — has already been filmed and is due to be screened in the autumn. A source told The Sun on Sunday: 'The relationship between Netflix and Meghan goes far deeper than many people realise.' Sarandos has a weekend home near the Sussexes in Montecito, California, and recently said: 'I think Meghan is underestimated in terms of her influence on culture. "People are fascinated with Meghan Markle.' The initial Netflix deal was with both Meghan and Harry and was reportedly worth £78million over five years. But he turned up for only a few minutes in the final episode of the first series. The Sussexes have been approached for comment. 2 THE Duchess of Sussex has kept busy since stepping down as a senior working royal in 2020 and relocating to California. Here are some of her business ventures... Archewell Foundation – A nonprofit supporting charitable initiatives. Netflix Deal – Producing content like Harry & Meghan and With Love, Meghan. Archetypes Podcast – Former Spotify show on female stereotypes. Clevr Blends – Investment in a women-owned wellness latte brand. Cesta Collective – Minority stake in a handbag brand supporting Rwandan artisans. As Ever – Previously known as American Riviera Orchard lifestyle brand selling jam. ShopMy Page – Online store featuring her curated fashion and beauty items. New Podcast – Confessions of a Female Founder focusing on entrepreneurship.
Daily Mirror
24-05-2025
- Entertainment
- Daily Mirror
Meghan Markle gets new Netflix deal as insiders say CEO is 'massive' fan
Insiders believe the new deal will be a much-reduced offer compared with their current agreement, will be focused entirely on Meghan and this time will be without a generous upfront payment Meghan Makle has secued a new Netflix deal despite ratings which insiders concede were 'limp' and 'disappointing'. The launch of ' With Love, Meghan ' provides an intimate peek into her world, shining a light on her zeal for cooking, pottering around in the garden, and playing the perfect hostess to her friends. Stars like Mindy Kaling and Abigail Spencer pop up throughout this personal venture. In the first seven days following its release in March the show had 2.6million views and 12.6million hours of the show had been streamed. The show just scraped into Netflix's global top 10 for the week. This is in contrast to the 2022 docuseries Harry & Meghan, which had 97.7million hours watched in its first seven days on the platform - and became its biggest documentary ever. The second season is coming in the autumn and has already finished filming, according to Netflix. But 'With Love, Meghan' will be recommissioned for a third series to be shown next year, with the deal being renewed in September, according to MailOnline. A soure told MailOnline: "'What people do not understand about the situation is that [Netflix CEO] Ted Sarandos is a massive, massive fan of Meghan personally. He calls her "the rock star". There is no way that her deal does not get renewed. Ted is in the Meghan business and that is not about to change. He is all in." Insiders believe the new deal will be a much-reduced offer compared with their current agreement, will be focused entirely on Meghan and this time will be without a generous upfront payment. Netflix boss Ted Sarandos - who has a weekend home near to the Sussexes in Montecito with wife Nicole Avant - tends not to talk about her in interviews, but it's clear where he sees the duchess's potential. In March this year, just after With Love, Meghan started streaming, he spoke about her in a long-profile piece in industry bible Variety and said: 'I think Meghan is underestimated in terms of her influence on culture. "When we dropped the trailer for the Harry & Meghan doc series, everything on-screen was dissected in the Press for days. The shoes she was wearing sold out all over the world. The Hermes blanket that was on the chair behind her sold out everywhere in the world. People are fascinated with Meghan Markle. She and Harry are overly dismissed." So strong was his belief in Meghan that a second eight-episode series of With Love, Meghan was filmed at the same time as the first last spring, and it will go out this autumn. Royal expert Jennie Bond added that Meghan should not make any wholesale changes when it comes to the new series, despite the reviews. She added: "It is a lifestyle show. It is not a political debate or an analysis of global affairs. It's not meant to have any great substance. "It is a show about making things pretty or tasty or comfortable. It doesn't pretend to be anything else. So I don't think Meghan should change anything about it for her next series, which has already apparently been shot. "The crew who worked on it have spoken about how charming and hospitable she was. That's refreshing to hear. The show has quite a few handy little tips if you're interested. And if you're not, then the answer is blindingly obvious: don't watch it. But leave the poor woman alone and stop the bitchy comments."
