December 23, 2011, 11:21 AM — An employee responsible for the kind of disastrous strategic decisions made this year by Netflix CEO Reed Hastings probably would get fired.
But Hastings' mistakes will cost him $1.5 million.
Which is the worse punishment?
That's easy: Getting fired. Because while Hastings will see his stock options reduced by 50% next year, it still will leave him with another $1.5 million in options, plus an annual salary of $500,000.
The fired person is left with a LinkedIn account.
Netflix revealed the financial hit to Hastings in a document filed with the Securities and Exchange Commission on Thursday, the very day I published this post about Netflix's nightmarish year being No. 11 on my list of top tech stories of 2011.
I know, it blows my mind too.
By the way, the SEC filing has some other interesting data on compensation for top Netflix executives. For example, the execs with the highest annual salaries are chief product officer Neil Hunt and chief content officer Ted Sarandos, each of whom make $1 million a year.