James Warrington
The chief executive of Warner Bros is in line to make more than $US700 million ($984 million) after the Hollywood studio was sold to rival Paramount.
David Zaslav, one of America’s best-paid movie executives, stands to receive $US517 million from unvested Warner Bros shares, a cash severance payment of $US34.2 million, $US44 million in benefits as well as $US116 million for shares which have already vested.
He could also be entitled to tax reimbursements of more than $US335 million, though this figure is expected to reduce over time and would drop to zero if the takeover does not complete until 2027, according to a regulatory filing.
Warner Bros said the figures were estimates and could “materially differ” from the final outcome once the deal closes.
The 66-year-old media mogul is being rewarded handsomely after overseeing the blockbuster takeover of the Harry Potter studio by Paramount.
Warner Bros initially agreed to an $US83 billion takeover by Netflix before this was gazumped by a superior offer from Paramount, which is controlled by Oracle billionaire Larry Ellison.
The price tag marks a significant premium for Warner Bros, which had struggled for direction after being formed in a $US43 billion merger in 2021.
Shares in the debt-laden studio giant were trading at just $US10 a year ago, with the takeover clinched at $US31 a share.
Nevertheless, Zaslav’s huge pay packet risks sparking anger among Hollywood’s rank-and-file workers.
The industry is bracing for sweeping job cuts after Paramount said it expects to make $US6 billion in cost savings.
Netflix, which received a $US2.8 billion break fee from Paramount, had argued that those cuts would likely be closer to $US16 billion as the new company strips out duplication in its studio and news businesses.
Zaslav, who sold Warner Bros shares worth more than $US114 million this month, has previously come under fire for his pay awards.
He took home almost $US250 million in 2021 thanks to stock awards linked to the company’s creation, while shareholders voted against his $US52 million pay packet for 2024.
The filings showed payouts for other executives including Warner Bros streaming boss JB Perrette and chief financial officer Gunnar Wiedenfels, who are in line to earn $US142 million and $US120 million respectively.
Warner Bros will also pay almost $US200 million in fees to its key advisers Allen & Co and JPMorgan.
Shareholders are expected to vote on the Paramount takeover at a special meeting next month.
The company has not yet published its regular annual salary and bonus figures, which will come in addition to these merger payments and be put to an investor vote at the annual meeting this summer.
Away from the takeover saga, Warner Bros has enjoyed a successful year at the box office. The studio won a record 11 prizes at the Oscars last weekend for films including One Battle After Another, Sinners and Weapons.
Telegraph, London
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