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Warner Bros. Shareholders Rebel Against CEO's Massive Payout
23 Apr
Summary
- Shareholders approved Paramount's $111 billion deal to acquire Warner Bros.
- Investors rejected executive compensation packages, including CEO Zaslav's.
- Zaslav's exit package is valued at least $550 million.
Warner Bros. Discovery shareholders have approved Paramount Skydance's $111 billion acquisition. This merger moves David Ellison closer to controlling a new Hollywood media empire. Shareholders voted in favor of the deal, which includes $31 per share in cash for Warner Bros. Discovery.
However, a significant number of shareholders rejected the generous exit packages for CEO David Zaslav and other top executives. This symbolic vote, while non-binding, signals shareholder dissatisfaction with the compensation. Shareholder advisory firm ISS recommended voting against the measure due to concerns over tax reimbursements and stock awards.
David Zaslav's compensation package is estimated to be at least $550 million. This includes $34.2 million in cash severance, $517.2 million in equity, and tax reimbursements of up to $335 million. Other executives, including J.B. Perrette, Bruce Campbell, Gunnar Wiedenfels, and Gerhard Zeiler, are also set to receive nine-figure payouts.
The debt-fueled deal, which would merge companies including HBO, Warner Bros. studios, DC, CNN, and Paramount, is pending regulatory approval from the Justice Department and European entities. Paramount anticipates $6 billion in cost savings, suggesting significant layoffs.
