David Zaslav has indeed made a significant amount from selling Warner Bros. Discovery to Paramount Skydance—over $800 million in dividends, which hasn’t exactly made him popular with all shareholders, as evidenced by a non-binding vote earlier this month.
However, less attention has been paid to how he shared this wealth. When Zaslav became the owner of Warner Bros., HBO, and CNN in 2022, he brought a distinct culture of ownership, granting stock awards to nearly half of his 35,000 employees as part of their compensation.
The company’s stock climbed from around $7 per share to its closing price of $31 per share, reflecting a nearly $80 billion valuation, excluding debt. This means approximately 16,000 employees have benefited from one of the best stock deals in recent media history.
“People are sending their children to private schools thanks to the stock ownership,” one employee noted during an interview. “They’re purchasing homes. This is how it should work.”
The deal with Paramount Skydance won’t finalize until a regulatory review is completed. While a spokesperson for the company couldn’t provide specifics about the average stock grant amounts or their appreciation, anecdotal accounts suggest a significant turnaround in Zaslav’s ownership culture, especially following the resolution of the leadership transition.
For example, one employee in advertising sales received $100,000 in stock, which appreciated to roughly $600,000. Another, a corporate event planner with $220,000 in stock, now holds more than $1 million. The same goes for someone from the WBD sports production team.
In a broader context, BlackRock CEO Larry Fink’s recent call to nurture an “ownership culture” in Central America stands out as perhaps the most overlooked aspect of his annual letter.
He pointed out that individuals concerned about job security in the age of AI can harness technological progress by investing in it. Thanks to an array of exchange-traded funds, mutual funds, and fractional shares, this has never been more accessible.
Zaslav’s approach to ownership stemmed from his time at NBCU under General Electric and the guidance of the iconic CEO Jack Welch, whom Zaslav deeply respects.
Welch was pioneering in promoting stock ownership among GE employees, effectively aligning employee interests with those of shareholders; this strategy contributed to GE’s prominence in the stock market.
Zaslav took on the role of WBD’s CEO after running Discovery, where John Malone—an influential shareholder—played a vital role in orchestrating the merger with Warner Media, which struggled under AT&T’s ownership.
Faced with significant debt, Zaslav had to optimize streaming services and studios while also cutting expenses.
WBD stock had long been stuck in the $6 to $8 range, often targeted by short sellers. However, Zaslav was confident enough in his strategy to accept most of his compensation in stock options, putting his own financial fate in line with the stock performance.
By 2025, as employees began receiving stock as compensation, Zaslav’s vision for the company started to materialize. He managed to decrease the debt significantly, and Warner Bros. started producing box office hits again. The streaming service was revamped and renamed HBO Max, which eventually became the third-largest service after Netflix and Amazon Prime.
This success made WBD a target for acquisition. David Ellison, backed by his father, Oracle co-founder Larry Ellison, initially bid $19 in cash and stock. In reaction, Zaslav ignited a bidding war, complicating matters for both Netflix and the Ellisons, ultimately leading to a final sale price of $31 per share.
Zaslav has faced criticism over his high salary and the substantial profits from the sale, particularly from those who might usually voice concerns about class divides. Yet, this narrative often overlooks the fact that he chose to receive a significant portion of his earnings as stock options.
“When he came on board, WBD only offered stocks as compensation at the senior levels,” remarked one employee. “He aimed to create an ownership culture, so he extended stock options throughout the organization.”
Jack Welch would likely be proud of this philosophy.
