WBD Investors Oppose Zaslav Raise Amid Merger Fallout
- Discovery is reportedly planning to unwind its merger by splitting into two separate companies.
- The media giant, responsible for HBO and CNN, lost $11.5 billion last year.
- Despite the company's struggles, Zaslav is expected to receive a $52 million pay package, including a $23.9 million cash bonus and $23.1 million in performance-based stock grants.
Warner Bros. Discovery Split Sparks Executive Pay Debate
Updated June 15, 2025
Warner Bros. Discovery is reportedly planning to unwind its merger by splitting into two separate companies. This decision follows significant financial losses and widespread criticism of CEO David Zaslav’s compensation, even as the company undergoes layoffs.
The media giant, responsible for HBO and CNN, lost $11.5 billion last year. To cut costs, another round of layoffs is underway, impacting the quality of its streaming service, which is increasingly filled with reality TV and lower-tier content. The initial merger,intended to create synergies,has instead led to financial strain and strategic missteps.
Despite the company’s struggles, Zaslav is expected to receive a $52 million pay package, including a $23.9 million cash bonus and $23.1 million in performance-based stock grants. This has drawn criticism from investors, who recently cast a symbolic vote against the compensation plan.
according to Variety, the warner Bros. Discovery board justified Zaslav’s pay by citing cost savings achieved through consolidation and layoffs. The company reported $1.8 billion in savings in 2024, exceeding internal goals.
“Warner Bros. Discovery, the film and TV colossus behind HBO and CNN, announced on Monday that it would cleave itself into two companies, separating its cable networks and streaming businesses.”
“one of those goals for Zaslav was to “Complete integration pipeline; Implement cost controls to adjust cost to serve in declining linear [TV] revenue environment.” On this front, Zaslav “Achieved incremental cost savings of $1.8B in 2024, considerably overdelivering against internal goal,” according to the WBD compensation committee. (Those savings were achieved in part through major layoffs.) The committee resolute Zaslav had met the outlined strategic goals at 115% of his target.”
What’s next
As Warner Bros. Discovery prepares to split, the focus will be on how the debt is divided between the two entities. Zaslav is expected to continue leading the company’s streaming business and movie studios,even as questions about his leadership and compensation persist.