Reed Hastings, the chairman and CEO of Netflix, Inc. (NASDAQ:NFLX) retained both his positions after the shareholders of the online video streaming company rejected the proposal to split his roles during their annual meeting today.
Hasting held his roles since 2002. According to the proponents of the non-binding proposal to separate the role of the chairman as independent position and cannot be held by a current employee of Netflix, Inc. (NASDAQ:NFLX) will increase the independence of the board and decrease the influence of the management.
The California Public Employees’ Retirement System (CalPERS) and Glass, Lewis and Institutional Shareholder Services were among the shareholders of Netflix, Inc. (NASDAQ:NFLX) that supported the proposal. The pension fund and the advisory services firm argued that having an independent CEO and a chairman will provide the online video streaming company a better opportunity to achieve long-term profits and return on investment for shareholders.
53% of shareholders vote against chairman and CEO split
Shareholders who held fifty three percent (53%) of the shares of the online video streaming company voted against the split of the chairman and CEO role. Netflix, Inc. (NASDAQ:NFLX) allowed a vote on the proposal this year when its stock price reached a near all-time high. Over the past 52-week range, the stock price of the company increased from $252.75 to $458 per share. The number of its subscribers also rose to more than 48 million globally.
The online video streaming company received a similar proposal and received a 73% approval, but the board of Netflix, Inc. (NASDAQ:NFLX) did not act on it.
Hastings is now a billionaires club
Separately, a report from Forbes reported that Hastings joined the billionaire’s club after Netflix’s stock reached more than $400 per share. The stock closed $423.09 per share on Monday.
The media entity estimated that Hasting’s wealth, which is tied up to his Netflix stock and options are worth more than $900 million. Adding his other assets including approximately $120 million in post-tax profits from selling his shares over the past five years, his total fortune is worth over $1 billion.
Hastings was among the executives who joined “Giving Pledge,” which was started by billionaire investor Warren Buffett together with Bill Gates and his wife Melinda. As part of the Giving Pledge, Hastings is willing to donate 50% or more of his fortune to charity during his lifetime or after death.