Warner Bros. Discovery CEO David Zaslav will see his pay package take a haircut after the proposed separation of the company next year — although WBD also just granted him stock options currently worth $225 million as an “inducement” to remain with the company.
The media conglomerate last week said it would split into two companies: WBD Streaming & Studios, to be led by Zaslav, and WBD Global Networks, headed by CFO Gunnar Wiedenfels. The separation is expected to be completed by mid-2026.
Beginning upon the completion of the separation, a new employment agreement the company reached with Zaslav “will significantly reduce his target annual compensation, including lowering his annual cash compensation opportunity and reorienting the total pay mix toward long-term incentives,” according to an SEC filing Monday. The WBD board’s compensation committee said it believes the new structure “will foster a stronger alignment with stockholders and incentivize sustained, long-term value creation.”
The change comes after WBD shareholders earlier this month expressed disapproval with the pay packages of Zaslav and other top execs, with 59% of shares voted at the 2025 annual meeting rejecting their pay packages in a symbolic rebuke.
In 2024, Zaslav’s pay package increased 4.4% pay bump to total compensation of $51.9 million, including a cash bonus of $23.9 million and $23.1 million in performance-based restricted stock grants.
Once the WBD split is completed, Zaslav will become the CEO of Streaming & Studios with a term of employment that runs through Dec. 31, 2030. He will have a base salary of $3 million per year for the duration of the term, as he does now.
Following the separation, Zaslav’s target annual cash bonus opportunity will be reduced to $6 million, with the actual payout based on the achievement of performance goals — down from his cash bonus target of $22 million under his previous agreement.
Zaslav will also be eligible to receive annual equity awards following the separation under Streaming & Studios’ equity incentive plan with a target value of $15.5 million the first year that he receives an equity grant from the company and which will be reduced to an annual target value of $7.5 million per year thereafter during the term of employment. According to Zaslav’s previous Warner Bros. Discovery, his equity target value per year was $23.5 million.
At the same time, Zaslav on June 12 received a one-time “inducement” that the board’s compensation committee believes “will incentivize the successful completion of the Separation and stockholder value creation.” That comprises a stock option award consisting of 20,898,776 stock options — currently worth $225 million based on Monday’s WBD share price — in the form of 60% performance-vesting stock options and 40% time-based stock options.
In addition, Zaslav is set to receive 3,052,734 stock options on Jan. 2, 2026, which will be subject to the same split of performance-vesting and time-based vesting conditions (provided that he remains employed on that date).
