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In a clear sign of discontent, Warner Bros. Discovery shareholders have voted against the 2024 compensation packages for CEO David Zaslav and other top executives. This decision came during the company’s annual stockholders meeting on June 2, highlighting concerns over executive pay amid ongoing corporate challenges.

According to an SEC filing, 1.06 billion shares were cast against the executive compensation advisory, while 724.5 million shares were in favor. This resulted in nearly 60% of voters rejecting the proposed pay packages. There were also 5.69 million abstentions and 307.38 million broker non-votes. The vote, though non-binding, serves as a significant advisory measure, commonly referred to as the "say-on-pay" vote, allowing shareholders to voice their opinions on executive remuneration.

In response to the vote, Warner Bros. Discovery's board expressed their appreciation for shareholder input. "The Warner Bros. Discovery Board of Directors values the views of all its shareholders and takes the results of the annual advisory vote on executive compensation seriously," said the board in a statement to Variety. The board's Compensation Committee plans to continue engaging in constructive discussions with shareholders.

CEO David Zaslav’s compensation package for 2024 saw a 4% increase, totaling $51.9 million. This includes a base salary of $3 million, stock awards worth $23.1 million, bonus compensation of $23.9 million, and an additional $1.9 million in other compensation. In the previous year, Zaslav's package was $49.7 million, marking a 26.5% increase from 2022, when his total compensation amounted to $39.3 million, following a monumental $246.6 million package in 2021, which included $203 million in stock options.

The other top executives at Warner Bros. Discovery also saw substantial compensation packages for 2024. CFO Gunnar Wiedenfels maintained his 2023 pay rate at $17 million. Bruce Campbell, the chief revenue and strategy officer, received a package of $19.8 million, up 8%. CEO and president of global streaming and games J.B. Perrette saw a slight decrease in his compensation, receiving $19.7 million, down 2%. Meanwhile, international president Gerhard Zeiler's package increased by more than 11%, reaching $14.8 million.

The advisory vote outcome highlights the shareholders' dissatisfaction with the rising executive pay amidst broader financial and operational challenges facing the company. The board's commitment to ongoing dialogue suggests a potential reevaluation of future compensation strategies to better align with shareholder expectations.