Netflix Inc CFO Quits After 4 Months for $2.4 million

Netflix Inc

Netflix Inc (NASDAQ: NFLX) is looking to hire a new chief accounting officer following the departure of its previous CFO after serving in the post for fewer than four months.

Netflix Inc Announcement

In a filing with the appropriate regulatory authorities, the online streaming company NFLX, -4.49% said on Friday that Ken Barker had tendered his resignation, effective October 7. Barker, 55, came to the business from Electronic Arts Inc. on June 27. EA, -1.52%, where he served as senior vice president of finance, the industry revealed in June that he had left the company.

Netflix has emphasized that the choice to leave is personal and is “not the consequence of any dispute with the company on any subject about the firm’s financials, operations, rules, or procedures,” as the statement put it.

While the organization continues its search for Barker’s successor, the business has appointed the Chief Financial Officer, Spencer Neumann, as the primary accounting officer.

Barker’s previous positions include that of vice president and corporate controller at Sun Microsystems Inc., as well as an audit partner at Deloitte & Touche LLP, all of which he held before joining Electronic Arts.

According to the report from June, his base compensation at Netflix Inc (NASDAQ: NFLX) was $2.4 million, and he was granted a stock option allowance of $600,000 annually.

The announcement comes as Netflix readies itself to launch a new tier of its streaming service that advertisements will support. This move was made in response to disappointing subscriber news from the beginning of the year and increased competition from new streaming services, most notably the Disney+ service from Walt Disney Co.

In April, the firm surprised investors by reporting its first drop in subscribers since the service was still in its infancy. Subsequently, officials discussed the possibility of adding a lower-priced tier, including advertisements, a move Founder Reed Hastings had opposed for years.

The firm announced that it planned to acquire more customers in the third quarter, which would help relieve some of the pressure that has been placed on its stock. The announcement was made about the company’s performance during the second quarter.

In May, it was revealed that about 150 employees would be let go, most of whom were located in the United States. They included some individuals from executive levels and the animation section.

The price of Netflix Inc (NASDAQ: NFLX) shares dropped by almost 5% on Friday. The fall was approximately 62% since the beginning of the year, while the S&P 500 SPX, -1.72% has fallen by only 23%.

Featured Image: DepositPhotos © Pixinooo

Please See Disclaimer

About the author: Valerie Ablang is a freelance writer with a background in scientific research and an interest in stock market analysis. She previously worked as an article writer for various industrial niches. Aside from being a writer, she is also a professional chemist, wife, and mother to her son. She loves to spend her free time watching movies and learning creative design.