Home » Black Swans » Netflix gets a fuzzy picture $NFLX Big Dogs have no skin in the game.

Netflix gets a fuzzy picture $NFLX Big Dogs have no skin in the game.

Image representing Netflix as depicted in Crun...

Image via CrunchBase

Netflix (Nasdaq:NFLX) has a leadership team with very little skin in the game. CEO Reed Hastings salary doesn’t depend on Netflix’s business performance.  Netflix has taken the unusual move of granting its named executive officers only fully vested stock options. Who runs the compensation committee?

Reed Hastings makes $500K per annum. His stock options were cut back in 2011 but he made $43 million that year by exercising 190,500 of stock options earned in times past. He and his henchmen probably do not have fire in the belly.

The stock is around a 34 trailing PE and has a short interest of 28.87% of the public float. Money flow is an anemic 1.04.

It looks like the boys do not have their eye on the ball.

George Gutowski writes from a caveat emptor perspective. Follow him on twitter@financialskepti