Sign up to receive 5 free days of our daily summary for tech news.

Read this article for free.

Already a subscriber? Log in here

Media

Netflix Reverses Stock Option Policy in Hunt for Talent

Question: Who in Silicon Valley would choose to work for a company that didn’t pay bonuses and only gave employees stock options if they were willing to forgo part of their salary in exchange?

Apparently, not too many, if Netflix’s experience is anything to go by. That unusual stock-for-salary allocation approach has been a central element of the streaming video outlet’s compensation policy for years, part of what it likes to call its “high-performance culture.”

But in response to the intense competition for talent from other Silicon Valley companies, Netflix has told its employees it is changing its policy, bringing it more in line with the rest of the tech industry. While employees will still be able to elect to receive part of their salary in the form of options, starting next year they’ll get an automatic grant of options on top of their salary.

The change is a rare retreat by Netflix, whose policy was described by compensation experts as highly unusual and often hard for employees and prospective hires to understand.

What Is The Information?

Notes bb3aa5069205d702dda37fc71dc6f1c59df2310c4379304e9f1199f052af4884

Exclusive Articles

Receive original reporting about the most important tech companies, from Apple to Uber, in your inbox or online.

Notebook b5103017ee163370a1667c9ce59ab0ef023875a17888105d26c185cadf31bb69

Daily news analysis

Every weeknight, we'll send you our reporters’ views on the day’s top tech news—distilled into one email.

Conference calls c9e664e8b96ee347d3e92b8309938f268422b9db98cfabca5c826fbb75054b23

Conference calls

Go deep into areas like crypto and VC diversity—or get real-time analysis of breaking news—via conference calls with our reporters and other experts.

Events 499acedd16cffc41445edd76bfd302b2836c2a27419890f17130a6b10e2aa3df

Special Events

For no extra fee, subscribers get access to dozens of events a year, from intimate dinners to larger gatherings with marquee speakers.

Access the best reporting on the tech industry read by tens of thousands of global executives.

Become a contributor

Share your views and find other subscribers by completing your profile. You’ll be listed in our contributor directory.

Org Charts

Access the only collection of tech company org charts. Our expanding database includes companies like Amazon, Snap, and Uber.

Slack community

Discuss topics and current events with our subscriber-only Slack group and share news about your company with other subscribers.

Share with your team

Subscribers can unlock any article and share it with friends and co-workers through a special share link.

Stay up to date on Silicon Valley

Sign up for Jessica Lessin’s (The Information’s CEO & Founder) free Saturday newsletter and also receive a complimentary week of our daily afternoon tech commentary email.

Already a subscriber? Log in here

Recent Articles

Entertainment

How Fate of Fox Affects Future of Hollywood

By Matt Pressberg

Entertainment

How Netflix’s Management Structure Is Rewriting the Hollywood Script

By Tom Dotan

Media Entertainment

Why Hulu’s Heavy Losses Pose Question for Disney and Comcast

By Tom Dotan

Media Entertainment

For Streaming Sports Upstart, a Potential World Cup Boost

By Matt Pressberg

But the stock drop had a golden lining. Because the monthly grants are set at a dollar value nominated by the employee, the lower the stock price prevailing, the more options are granted.