Netflix employee salaries are reportedly available to all execs
- Netflix has an open-salary
policy for directors and execs, according to the Hollywood Reporter.
- The internal system was reportedly implemented in 2017 to
help high-level employees determine if they’re fairly
compensated, and some employees are shocked at the highest
- Netflix pays its employees
25% to 50% more than competitors, with entry-level coordinators
making six figures and vice presidents earning a minimum of $1
million, sources told the Hollywood Reporter.
As one of the world’s first subscription-based streaming media services, Netflix has a reputation for
disruption — and the company is paying employees top dollar to
help continue that legacy.
According to a recent article by the Hollywood
Reporter‘s Bryn Elise
Sandberg, sources said Netflix pays employees 25% to
50% more than competitors (including 5% in stock). And among
top-level employees at Netflix, that pay isn’t secret.
Sources told the Hollywood Reporter that any employee working at
a director level or higher can see other employees’ current
salary and pay history.
This pay practice was reportedly implemented by chief content
officer Ted Sarandos in 2017 so employees can
determine if they’re fairly compensated.
Netflix reportedly places “a high priority on conversations
about pay” and employee efficiency, Sandberg wrote.
Business Insider’s Shana Lebowitz
previously reported that in
the “culture” section on
Netflix’s website, the company makes clear that it keeps “only
our highly effective people.” The site reads: “Succeeding on a
dream team is about being effective, not about working hard.
Sustained ‘B’ performance, despite an ‘A’ for effort, gets a
respectful generous severance package.”
Still, the move to reveal pay among top-level employees has left
some shocked at the highest salaries.
“Everyone is always looking. It’s, ‘Holy sh–, they got a
$2 million raise last year? What happened?!'” one employee told
the Hollywood Reporter.
“We were all like, ‘F—, this is crazy,'” another employee
told the magazine. These reactions aren’t surprising
considering the company’s industry-leading salaries.
For executives, that looks something like this:
- Managers: $150,000 to $400,000
- Directors: $400,000 to $800,000
- Vice presidents: $1 million-plus
A top publicity executive is rumored to make a base salary of
$1.5 million, according to the Hollywood Reporter’s sources. Even
entry-level assistants can make between $70,000 and $80,000, and
some coordinators take home six figures.
The Hollywood Reporter
previously reported Netflix CEO Reed Hastings could make up
to $29.4 million in 2018, while COO Sarandos will earn
$12 million this year, up from $1 million in 2017.
“It’s not comparable to anywhere else,” an employee told
the Hollywood Reporter. “It’s like play money.”
Pay transparency isn’t a new concept. Companies from Whole
Foods to tech startup Buffer have implemented open-salary
policies in the workplace.
And studies cited by
Burkus in his 2016 book “Under
New Management: How Leading Organizations are Upending Business
as Usual” even point to pay transparency as a way to keep
employees motivated and productive.
Business Insider has reached out to Netflix for comment.