John Malone claims to have offered advice to David Zaslav regarding the compensation agreement for Warner Bros. Discovery, as well as the acquisition of NBA rights.

Warner Bros. Discovery CEO David Zaslav's Compensation Package Revised

In a significant move, the compensation package for David Zaslav, the CEO of Warner Bros. Discovery (WBD), has undergone a transformation. The changes, announced in June 2023, were designed to better incentivize Zaslav's critical contributions and align his interests with those of the shareholders.

According to an 8-K filing by WBD, Zaslav's base salary remains unchanged at $3 million. However, his target annual cash bonus opportunity has been reduced from $24 million in 2024 to $6 million. His equity awards, on the other hand, have a target value of $15.5 million in the first year, decreasing to $7.5 million for subsequent years.

The redesign of Zaslav's package follows stockholder feedback and preferences regarding CEO compensation structures. The changes aim to encourage Zaslav "to think like a shareholder," as noted by John Malone, a media mogul who is advising Zaslav on his new contract with WBD.

Malone, known for his friendly rivalries with industry giants like Reed Hastings, Rupert Murdoch, and Ted Turner, and for launching television's first cable networks, has been actively involved in guiding Zaslav. He texts Zaslav daily and has offered advice on WBD's rights negotiations with the NBA, urging caution against spending billions.

Malone's influence extends beyond WBD's operations. He is also set to release his memoir, Born to Be Wired, on Sept. 2, which shares stories from behind the scenes of transformative deals in media and technology. Malone has previously criticised CNN, stating that it is "a left-leaning, anti-Trump news service." In response, CNN's spokesperson asserted that they believe in a fair-minded and fact-biased news service.

It's worth noting that in 2022, Zaslav's compensation package was $39.3 million. The new structure, effective from 2023, is valued at $51.9 million for 2024. However, shareholders voted to reject the 2024 compensation packages of WBD's top executives, including Zaslav, indicating that the changes may not have fully satisfied shareholder expectations.

In a related development, WBD lost the rights to the NBA after holding them for 35 years in summer 2024. The impact of this loss on Zaslav's performance-based compensation remains to be seen.

As Zaslav navigates this new compensation structure and the challenges ahead, his relationship with Malone, a seasoned industry veteran, could prove invaluable. The evolving dynamics between these media titans will undoubtedly continue to shape the landscape of the media industry in the years to come.