Why John Malone Advised on Zaslav’s Controversial Pay Deal

Media mogul John Malone advised David Zaslav on his new Warner Bros. Discovery contract. The new deal aims to maximize long-term wealth for the CEO. It also seeks to reduce public criticism of executive pay.

Malone discussed the strategy in an interview with the New York Times. He is a longtime mentor to Zaslav. His new memoir, “Born to be Wired,” details his career in media.

Zaslav Warner Bros. Discovery Pay Structure Overhauled

John Malone recently counseled David Zaslav on his compensation. He suggested a package with a “skinny” headline figure. The real value comes from long-term performance incentives.

According to The Hollywood Reporter, Zaslav’s 2024 pay was $51.9 million. This was up from $39.3 million in 2022. Shareholders voted to reject this executive pay package in June.

The new structure heavily emphasizes stock performance. Malone believes this aligns Zaslav’s interests with shareholders. It encourages decisions that boost the company’s stock value.

New Contract Details and Broader Impact

The Warner Bros. Discovery compensation committee redesigned the package. They aimed to address stockholder feedback on pay structure. The changes also incentivize Zaslav’s critical leadership role.

His base salary remains at $3 million. His target annual cash bonus opportunity drops significantly to $6 million. His equity awards will have a target value of $15.5 million in the first year.

This shift reflects a growing trend in corporate governance. Companies are increasingly tying executive pay to measurable performance metrics. Shareholders are demanding more accountability for high compensation.

Malone also advised Zaslav during the NBA rights negotiations. He counseled against spending billions. Warner Bros. Discovery’s TNT Sports ultimately lost the NBA rights after 35 years.

The new pay package for David Zaslav marks a significant shift towards performance-based compensation at Warner Bros. Discovery. This strategy aims to foster long-term growth and shareholder value.

Thought you’d like to know

What is John Malone’s relationship to David Zaslav?

John Malone is a longtime mentor to David Zaslav. He provides regular advice on major corporate decisions.

Why did shareholders reject the previous pay package?

Shareholders voted against the 2024 executive compensation. They expressed concerns over the high pay figures.

How does the new pay package work?

The new structure reduces the cash bonus opportunity. It increases the focus on stock performance awards.

What was Malone’s advice on the NBA rights?

Malone advised Zaslav not to overspend on the NBA television rights. TNT Sports ultimately lost the bidding war.

What did Malone say about CNN?

Malone stated CNN is a “shadow of what its founder envisioned.” He criticized its left-leaning editorial slant.

Sources: The New York Times, The Hollywood Reporter, Warner Bros. Discovery SEC filings.