David Zaslav will take a pay cut following Warner Bros. Discovery split

After collecting a pay package of $51.9 million last year, making him one of the highest-paid CEOs in the country, Zaslav is facing cuts in the coming year, reports The Wall Street Journal. Under a new contract offered by the board, he will retain his $3 million per year salary, but his target bonus would fall from $22 million last year to $6 million moving forward (with a cap of $12 million). In addition, he would receive a target of $15.5 million in equity next year, then $7.5 million in following years.

Beyond that, though, Zaslav was given options for 21 million shares last week. He’s also due to get at least 3 million more shares in January. He will become 40% vested in those over five years, with additional vesting benchmarks happening if the company’s stock price increases in three levels over that time by 20% to 65%.

Should all of the targets be hit, those options could let him pocket $150 million.

The new pay package will kick in only if the split occurs by the end of next year.

Zaslav’s salary has historically been controversial. Earlier this month, shareholders of Warner Bros. Discovery voted down his compensation package, as well as that of other top executives, in a “Say on Pay” vote. That vote, however, was symbolic and nonbinding, and the board gave Zaslav his $51.9 million.

The media and entertainment giant announced on June 9 that it will separate into two publicly traded companies through a tax-free transaction. Zaslav will lead the streaming and studios company, which will oversee movie properties and the HBO Max streaming service. Gunnar Wiedenfels, who has been CFO since 2022, will become CEO of global networks, which will include cable channel businesses CNN, TNT, TBS, Discovery, and more.

Zaslav has been CEO of WBD since 2022. His pay rate is higher than that of several competitors, including Disney’s Bob Iger ($41.4 million), Comcast’s Brian Roberts ($33.9 million) and SiriusXM’s Jennifer Witz ($32.1 million).