On the block?

July 8, 2005

Earlier this week, Netflix (NFLX) disclosed new executive severance agreements with executives who hold the title of vice president or higher. It’s not clear exactly how many executives that covers, but the agreements provide nine months of salary and nine months of the “cash equivalent to the stock option allowance” for this group.

The agreement also gives another group of executives — it’s also not clear from the filings who — a lump sum “retention incentive” of 12 months of salary and 12 months of the “cash equivalent to the stock option allowance” for those who don’t qualify for the severance.

A quick scan of Netflix’s earlier filings doesn’t turn up any similar language. Could that mean that there’s a buyer in the wings? Past experience with other companies seems to point that way. Stay tuned.

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