Reed Hastings Net Worth 2024

What is Reed Hastings’ net worth and wage?

Reed Hastings is an American entrepreneur who has a net worth of $4 billion. Reed Hastings has earned his fortune because the co-founder, Chairman and CEO of Netflix. As of the corporate’s most up-to-date SEC submitting, Reed owns 5.2 million shares of Netflix together with choices. At his peak, when Netflix inventory was hovering, Reed’s net worth reached as excessive as $7 billion.

Reed was on the board of administrators of Facebook from 2011 to 2020. Ironically he’s not, and has by no means been a Facebook consumer. In truth, he has described social media as his “thought of hell”. He was on the board of administrators of Microsoft from 2007 to 2012.

Salary

Reed Hastings’ base wage at Netflix is $650,000. That’s a pay minimize from the roughly $3 million base wage he earned in a few years within the 2010-2014 period. He voluntarily cuts his wage every now and then. Even in good years. For instance, he minimize his base wage from $700,000 in 2019 to $650,000 in 2020. With bonuses, inventory awards and different compensation he sometimes finally ends up incomes considerably extra in wage. For instance in 2020, on high of the $650,000 base wage Reed earned roughly $33.4 million in different compensation. In 2019 he earned $31.5 million. In 2018 he earned a complete of $29.4 million.

Early Life

Wilmot Reed Hastings Jr. was born on October 8, 1960 in Boston, Massachusetts. His father was an lawyer for the Department of Health, Education and Welfare for the Nixon administration. After highschool he spent a yr promoting vacuum cleaners door-to-door earlier than enrolling at Bowdoin College in Maine. He spent summers coaching on the Marine Corps’ Platoon Leader School with the intention of becoming a member of the Marines after graduating. Instead, the very subsequent day after graduating he selected to affix the Peace Corps. While within the Peace Corps Reed taught math in faculties in Swaziland. Speaking about his time within the Peace Corps a long time later, Reed would say:

“Once you’ve hitchhiked throughout Africa with $10 in your pocket, beginning a enterprise would not appear too intimidating.“

During this time he determined to use to graduate faculties. His first selection was M.I.T., however he was rejected and as a substitute opted for Stanford. He graduated in 1988 with a grasp’s in pc science.

Career

His first job after Stanford was for the oilfield companies firm Schlumberger. He then labored as a software program developer for a corporation referred to as Adaptive Technology. At Adaptive, his focus was debugging software program.

Pure Software

In 1991, on the age of 31, Reed co-founded an organization referred to as Pure Software. The firm’s first product was a debugging device for Unix/C engineers referred to as Purify. Pure Software went public in 1995. A yr later the corporate merged with a rival referred to as Atria to create Pure Atria Corporation. Pure Atria was later acquired by Rational Software for $750 million. It was the biggest acquisition in Silicon Valley historical past as much as that time. On the day the deal was introduced, each corporations’ inventory dropped 40%. Hastings was named CTO of the mixed new firm however ended up leaving quickly after the acquisition.

He had a bit bit of cash and nothing however time to think about his subsequent enterprise. He would discovered Netflix the exact same yr because the sale to Rational Software, 1997.

Netflix

According to firm lore, Reed came upon the thought for Netflix after getting a $40 late charge at a Blockbuster rental retailer for returning “Apollo 13” six weeks late. One day throughout the six weeks when he couldn’t find the lacking cassette, Reed went to his health club to work out. While understanding it dawned on him that the health club’s month-to-month charge mannequin of getting was significantly better than having to pay for one thing like a film rental each time you needed to look at a film. He realized there must be a service the place folks might pay a flat price and lease as many or as few films as they needed. As DVD gamers have been turning into extra widespread, his thought of sending films by means of the mail turned exponentially extra viable.

Reed co-founded Netflix with Marc Randolph on August 29, 1992 in Scotts Valley, California. Randolph was the advertising and marketing director at Pure Atria and had beforehand co-founded a mail-order software program firm referred to as MicroWarehouse. Hastings and Randolph used to commute to Pure Atria collectively from their properties in Santa Cruz, California and the corporate’s headquarters in Sunnyvale.

Randolph, who left Netflix in 2002 after the corporate’s IPO, would later supply a special model of Netflix’s founding lore. According to Randolph, it was he who had the thought for a direct-to-consumer DVD rental firm. He claims to have had the thought after seeing the pc software program trade transition to CD-Roms and the rise of e-commerce from Amazon.com. He claims he went to Hastings questioning if and when films switched to DVD from VHS, might they be safely rented by way of mail? Here is Randolph’s model of the story:

“Reed and I have been in downtown Santa Cruz and we have been saying ‘I’m wondering if we are able to mail one among this stuff [a DVD]. We went in and bout a music CD and went into a kind of stationary shops and purchased a greeting card and caught the CD within the envelope and mailed it to Reed’s home. And the subsequent day he mentioned ‘It got here. Its tremendous.’ If there was an aha second, that was it.“

Hastings has later disputed that Randolph was closely concerned within the formation of the thought for Netflix, however Randolph is formally thought of the corporate’s co-founder.

Hastings invested $2.5 million of his personal cash in startup capital for Netflix.

In July 1999 Netflix raised $30 million in enterprise capital funding. Two months later it launched its month-to-month subscription idea.

Netflix went public in 2002 at an preliminary providing value of $15 per share. Netflix had a market cap of $300 million after its IPO. After making an allowance for inventory splits, Netflix’s IPO value in at this time’s phrases was equal to $1.07 per share. In July 2020 Netflix inventory crossed $500 for the primary time. As of September 2020 the corporate’s market cap is $230 billion.

Blockbuster Acquisition Offer

In 2000, when the corporate had round 300,000 subscribers and was dropping cash at a daunting tempo, Netflix approached Blockbuster with a proposal. At the time, Netflix was on tempo to lose $50 million that yr.

Hastings proposed that Blockbuster purchase Netflix for $50 million. If Blockbuster accepted, Netflix would change its title to Blockbuster.com to deal with the net aspect of the rental enterprise. Blockbuster declined. The CEO of Blockbuster, John Antioco, reportedly thought the entire supply was a joke, explaining:

“The dot-com hysteria is totally overblown. If I have been to purchase you what have been you pondering? I imply a quantity.“

Hastings replied with “Fifty million.”

According to Hastings, Antioco “was struggling to not chuckle.” Needless to say, a deal didn’t occur. Just 10 brief years later, as Netflix’s progress exploded, Blockbuster filed for chapter. As of this writing Netflix has a market cap of $150 billion and practically 200 million subscribers. Reed Hastings is arguably an important and highly effective individual within the leisure trade and in enterprise.

Personal Life

Reed and his spouse Patricia Ann Quillin have two kids and dwell in Santa Cruz, California. According to public information, they paid simply $1.5 million for his or her relatively-normal house in August 2013.

In Hollywood they personal a two-story penthouse house in Hollywood. Reed purchased the house in 2016 from actress Charlize Theron for $1.75 million, which was really a full $1 million LESS than Charlize paid again in 2007.

In June 2020 Reed and Patricia donated $120 million to help America’s traditionally black schools and universities, colloquially generally known as HBCUs. The donation is the primary to exceed $100 million for this trigger from any billionaire particular person or couple. He is the primary of the Silicon Valley set to make such a beneficiant donation in direction of racial justice as properly.

The Hastings donated $40 million every to Morehouse College and Spelman College in addition to one other $40 million to the United Negro College Fund, which awards (and funds) scholarships to traditionally black faculties.