Revolt at CNNs Parent Company: High-Paid CEO Rejected by Shareholders

Published: Saturday, June 7, 2025 at 3:47 am

Shareholders Reject CEO's $52 Million Pay Package at Warner Bros. Discovery

Shareholders of Warner Bros. Discovery (WBD), the parent company of CNN, have delivered a significant blow to CEO David Zaslav, rejecting his proposed $52 million compensation package at the company's annual meeting this week. The vote, revealed in a regulatory filing, saw nearly 60% of shareholders voting against the package. The package included a $3 million salary, $23.1 million in stock, $23.9 million in non-equity incentive plan compensation, and $1.92 million for perks.

The board of directors had recommended shareholders approve the package, but their recommendation was not heeded. This decision comes amidst a period of significant cost-cutting measures and layoffs at both CNN and WBD during Zaslav's tenure. While Zaslav and CFO Gunnar Wiedenfels have reduced the company's debt by $21 billion, employees have faced sacrifices. The median annual compensation for a WBD staffer is approximately $130,316, a stark contrast to Zaslav's proposed earnings.

The rejection of the pay package, which saw Zaslav's compensation increase nearly 5% from the previous year, does not automatically mandate a reduction in his pay. However, it puts pressure on the company's leadership. The company stated it is taking the vote seriously and will continue to engage in dialogue with shareholders. Other executive pay packages, including Wiedenfels', were also rejected.

The vote comes after a period of financial challenges for WBD. The company's share price is down 7% year-to-date, and a recent quarterly review showed a 1% decrease in revenue and a 62% drop in net income compared to the previous year. Reports suggest WBD is considering separating its linear networks, including CNN, from its studio and streaming assets, similar to a move made by Comcast. This potential restructuring could see CNN become a key component of a new, cable-focused company.

BNN's Perspective:

The shareholder vote reflects growing concerns about executive compensation in the media industry, particularly when juxtaposed with cost-cutting measures and workforce reductions. While debt reduction is a positive step, the disconnect between executive pay and employee compensation, coupled with a declining share price, has clearly resonated with investors. This situation underscores the need for companies to balance financial performance with fair treatment of employees and shareholder value.

Keywords: Warner Bros. Discovery, WBD, David Zaslav, CEO, Pay Package, Shareholder Vote, CNN, Layoffs, Executive Compensation, Financial Performance, Revenue, Net Income, Debt Reduction, Media Industry, Comcast, Restructuring

Full Story