Netflix Accused of Violating U.S. Tax Law in Bonuses to Top Executives
According to the complaint, the performance goals were attached to targets for global streaming revenue — and were nearly always hit.
“By July 2017, Netflix’s top officers had hit their target squarely in seven out of eight quarters, missing by just one percentage point in the other quarter,” states the complaint. “This artificial precision resulted in the Company paying these officers approximately $18.73 million out of a target pool of $18.75 million.”
The shareholder nods to how the Financial Times last year remarked on the “uncanny accuracy.”
The plaintiff also acknowledges that no pre-suit demand upon the board was made because it would be a “useless and futile act,” with Netflix’s board unlikely to file suit against its own members.
Netflix hasn’t yet responded to an opportunity to comment.