David Zaslav's golden parachute reaches new heights

This is read by an automated voice.Please report any issues or inconsistencies here.

Even among the lofty realm of golden parachutes, Warner Bros.Discovery Chief Executive David Zaslav’s proposed payday stands out.Zaslav, one of the most richly compensated executives in America, is poised to receive as much as $887 million to depart the company once it is absorbed by David Ellison’s Paramount Skydance, Warner Bros.

Discovery disclosed in a recent proxy.That amount “represents one of the highest golden parachute estimates ever observed,” investor advisory firm Institutional Shareholder Services wrote in a report this week.“Support for the golden parachute proposal is not warranted.”Warner shareholders on April 23 will vote on the company’s $111 billion sale to Ellison’s Paramount — a meaningful mark as Ellison and his team race to line up the approvals for the industry re-shaping deal, which they hope to finalize this summer.

That vote is binding.The acquisition is expected to trigger substantial layoffs and other cost-cuts as the new owners consolidate two legendary studios and TV operations, including dozens of cable channels.Stockholders also will be asked to weigh in on Zaslav’s compensation package, although that vote is non-binding.Hollywood Inc.

Hollywood struggled in 2024, but the median pay for media and entertainment executives increased 7% from the previous year and doubled the median compensation for CEOs at S&P 500 companies.Several factors contributed to largesse for Zaslav, who has been running the debt-laden company for four years.Warner board’s agreed last month to cover Zaslav’s tax liabilities following the sale to Paramount.

Warner approved a provision to pay up to $335 million to reimburse Zaslav for excise taxes he will owe once he cashes out.Warner sought to justify the arrangement, saying in the proxy that Warner’s initial deal to sell the company to Netflix — which was Zaslav’s favored outcome — woul...