Warner Bros CEO set for $667M payout in Paramount deal
What's the story
Warner Bros. Discovery's CEO, David Zaslav, stands to gain a whopping $667.2 million from the sale of his company to Paramount Skydance Corp. The massive payout includes a cash severance of $34.2 million, vested stock awards worth $115.8 million and share awards worth $517.2 million that will be triggered by the deal, as per a filing by the company on Monday.
Tax refund
Zaslav could also receive a tax reimbursement of $335.4 million
Along with the massive payout, Zaslav could also get a tax reimbursement of $335.4 million if the deal closes quickly. The reimbursement was calculated as of March 11 and decreases over time if the deal takes longer to close and more shares vest. If the sale happens in 2027, this tax reimbursement would be zero.
Past earnings
Zaslav previously banked $113 million selling Warner Bros. shares
Before this potential windfall, Zaslav had already raked in $113 million from selling Warner Bros. shares earlier this month. The 66-year-old media executive was instrumental in the 2022 merger of Discovery Inc., a cable-TV programmer, with AT&T Inc.'s WarnerMedia business. However, after the company's shares fell due to cable TV woes, and Paramount made an offer, Zaslav oversaw a sale of his company.
Strategic decision
Deal still pending on stockholder vote and regulatory approval
The decision to sell Warner Bros. Discovery Inc. comes after the company's shares fell amid cable TV struggles and an offer from Paramount. Zaslav first agreed to sell its studios and streaming business to Netflix Inc., but after several changes in terms and a hike to $31 a share, the Warner Bros. board agreed to sell the entire company for $110 billion, including debt. The deal is still pending approval from certain regulators and a vote by Warner Bros.' stockholders.