Warner Bros. CEO to pocket up to US$887 million from Paramount deal

David Zaslav arrives at the season three premiere of "The White Lotus" on Monday, Feb. 10, 2025, at Paramount Theater in Los Angeles. (AP Photo/Chris Pizzello, File)

Warner Bros Discovery CEO David Zaslav is likely to receive up to US$887 million after completion of the media company’s sale to Paramount Skydance, according to a regulatory filing on Monday.

WBD last month agreed to be acquired by Paramount Skydance in a $110 billion deal, ending a high-stakes bidding war after Netflix walked away from its agreement with the HBO Max owner.

Zaslav is expected to get cash severance of about $34.2 million, including salary continuation and bonus components triggered by a change-in-control termination. The pay also includes $115.8 million in vested equity.

The WBD CEO is set to receive $517.2 million in unvested share awards - future stock grants that would be triggered when the sale goes through.

The payout includes estimated tax reimbursements of about $335 million for Zaslav. This payment is based on tax-code rules “that are expected to cause it to significantly decline with the passage of time,” the company said in the filing.

The tax payout will be zero if the completion of the deal gets pushed into 2027. Paramount expects the deal to close in the third quarter this year.

(Reporting by Kritika Lamba in Bengaluru; Editing by Leroy Leo)