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Netflix Switches Cash Bonuses to Salary Thanks to Tax Changes

Tax reform eliminates companies' ability to deduct performance-based bonuses to those earning more than $1M.

By Alicia Ritcey and Jenn Zhao, Bloomberg | Updated on January 02, 2018

Netflix Inc.’s top executives will now get paid in full no matter how the company does, thanks to the Republican tax plan.

The streaming-video provider is scrapping its cash bonuses, instead making the payments to top executives as salary. The recently passed tax plan eliminates companies’ ability to deduct performance-based bonuses to managers who are paid more than $1 million, so Netflix just decided to lump all cash payments into executives’ salaries.

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