Warner Bros CEO David Zaslav in line for $700m payout from Paramount deal

"Zaslav could receive $34.2m in cash severance payments, $115.8m in vested stock and $517.2m in unvested share awards once the deal is complete, according to a filing from Warner Bros Discovery on Monday. The chief executive of the studio is also expecting tax reimbursements of up to $335.4m."

"The value of the payout, which was calculated on 11 March, will decrease over time if the deal takes longer to close and more shares vest. If the sale of the company gets pushed to 2027, the tax reimbursement would be zero, although Paramount has said it expects the deal to complete in the third quarter of this year."

"Paramount's final acquisition price represents a nearly 150% premium compared with the Warner Bros share price in early September, before reports emerged that the business could be an acquisition target. Zaslav's possible huge payday comes even as analysts predict that Paramount will soon begin to cut jobs from its combined studios, TV and news operations."

David Zaslav, CEO of Warner Bros Discovery, is positioned to receive a substantial $700 million payout from the studio's $110 billion acquisition by Paramount Skydance. His compensation package includes $34.2 million in cash severance, $115.8 million in vested stock, and $517.2 million in unvested share awards, plus potential tax reimbursements of $335.4 million. The payout value, calculated on March 11, will diminish if the deal closes later than expected, with zero tax reimbursement if completion extends to 2027. Paramount expects closure in the third quarter of this year. Zaslav has already earned $113 million from share sales this month. Despite criticism of his management during the 2022 WBD merger, his performance awards increased significantly once acquisition interest emerged. Netflix previously offered $82.7 billion but withdrew, allowing Paramount to win the bidding war with funding from David Ellison's family backing.

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