Warner Bros Discovery faced a setback as a majority of shareholders voted against the 2024 pay packages of CEO David Zaslav and other top executives at the annual stockholder meeting, according to a recent regulatory filing. The board of directors had recommended shareholders to vote in favor of the proposed executive compensation for 2024, but more than 59% of them rejected the proposal on a non-binding basis.
In 2024, Zaslav’s total compensation saw a 4% increase from the previous year, amounting to $51.9 million. The company has been grappling with declines in its cable TV business due to cord-cutting trends, pivoting its focus towards the faster-growing streaming and studios divisions. Despite efforts to boost revenue, Warner Bros Discovery missed first-quarter revenue estimates and reported a larger-than-expected loss.
Reports suggest that the company is contemplating a potential breakup, with plans to sell or spin off its declining cable TV assets. This strategic shift was initiated last December when Warner Bros Discovery announced the separation of its streaming and studio operations from its cable TV business.
Despite these challenges, Warner Bros Discovery has been bolstered by a strong content slate, including successful shows like the third season of HBO’s “The White Lotus” and the medical drama series “The Pitt.” The company added 5.3 million streaming subscribers in the first quarter of the year, surpassing market expectations but still trailing behind industry leader Netflix.
In a bid to revamp its streaming service, Warner Bros Discovery recently rebranded its platform, bringing back the iconic HBO name that was dropped two years ago. This move reflects the company’s commitment to staying competitive in the ever-evolving streaming landscape.
Overall, Warner Bros Discovery’s journey towards transformation and adaptation in the face of industry challenges underscores the dynamic nature of the media conglomerate’s operations. As it navigates through changes and pursues growth opportunities, the company remains focused on delivering compelling content and engaging audiences across its various platforms.
