Warner Bros. Discovery CEO David Zaslav Receives $225 Million in Stock Options

Warner Bros. Discovery CEO David Zaslav is set to undergo a significant reduction in his annual pay package following the company’s split, despite being granted stock options valued at $225 million to entice him to stay on. The media conglomerate announced that it will divide into two separate entities: WBD Streaming & Studios, which will be overseen by Zaslav, and WBD Global Networks, led by CFO Gunnar Wiedenfels, with the division expected to be finalized by mid-2026.

In light of the impending separation, a fresh employment agreement was reached between WBD and Zaslav on June 12, which will significantly lower his annual compensation targets by reducing his cash compensation opportunities and focusing more on long-term incentives. The company’s compensation committee believes that this new structure will better align with the interests of shareholders and encourage sustainable long-term value creation.

This revised agreement comes on the heels of shareholder disapproval voiced earlier this month, with a significant 59% of shareholders rejecting the pay packages of Zaslav and other top executives at the company’s 2025 annual meeting. Zaslav’s total compensation in 2024 amounted to $51.9 million, showcasing a 4.4% increase, including a $23.9 million cash bonus and $23.1 million in performance-based restricted stock grants.

Upon the completion of the split, Zaslav will take on the role of CEO at Streaming & Studios until December 31, 2030, with an annual base salary of $3 million. His cash bonus opportunity will be reduced to $6 million annually, contingent upon the fulfillment of performance objectives, as opposed to the previous $22 million cash bonus target under his initial agreement.

Furthermore, Zaslav is eligible to receive annual equity awards under WBD Streaming & Studios’ equity incentive plan, starting with a target value of $15.5 million in the first year, decreasing to $7.5 million annually thereafter during his employment term. In contrast, his prior agreement stipulated an annual equity bonus target value of $23.5 million per year.

As an added incentive for the successful execution of the company’s separation and the creation of shareholder value, Zaslav received a one-time inducement in the form of a stock option award comprising 20,898,776 stock options, currently valued at $225 million. This award includes both performance-vesting and time-based stock options, designed to motivate Zaslav to achieve these milestones.

Prior to the formal separation, Zaslav will continue to serve as the CEO of Warner Bros. Discovery with similar terms to his previous agreement. Should the company’s division not transpire by December 31, 2026, these terms will persist as long as Zaslav remains in his CEO role until December 31, 2027.