In a pivotal moment for Warner Bros. Discovery (WBD), CEO David Zaslav is taking a substantial pay cut amid mounting shareholder pressure and as the media giant prepares to split into two publicly traded companies. This will involve WBD Streaming & Studios being led by Zaslav, and WBD Global Networks, being headed by CFO Gunnar Wiedenfels (separating CNN from HBO Max, and more). The separation is expected to be completed by mid-2026. The decision, announced alongside a broader executive compensation overhaul, reveals a critical inflection point for WBD’s leadership and the uncertain future of its sports division, TNT Sports.
Zaslav, who earned $51.9 million in 2024, has become a lightning rod for investor frustration—his pay drawing sharp rebukes as WBD’s stock performance stagnates and the company reels from the loss of its NBA media rights. In response, WBD’s board has restructured Zaslav’s compensation to reflect a more performance-driven model: his $3 million base salary remains, but his annual bonus is slashed to a target of $6 million, capped at $12 million and tied to clear benchmarks. Likewise, his annual stock awards are reduced from $23.1 million to $15.5 million in year one and $7.5 million annually thereafter.
To retain one of the industry’s most polarizing yet powerful CEOs, the board granted Zaslav a one-time inducement of nearly 21 million stock options. These vest only under a complex formula based on long-term performance—an attempt to balance investor demands for fiscal responsibility with the desire for leadership continuity as WBD navigates a transformative period.
Chief Financial Officer Gunnar Wiedenfels also signed a new deal that trims and refocuses his compensation. He’ll receive a $2.5 million base salary and a performance-based bonus capped at $17.5 million, plus $16 million in annual equity awards. Like Zaslav’s, his future earnings are now tightly linked to shareholder value creation.
Executive Pay Meets Investor Reality
In its SEC filing, WBD explicitly stated that the new packages are a response to “stockholder feedback and preferences,” emphasizing a commitment to “stronger pay-for-performance alignment.” The move is notable not just for its financial recalibrations, but for its symbolic weight: a media empire long criticized for lavish executive compensation is now bowing, at least in part, to market discipline.
The compensation shakeup comes as WBD prepares to split into two entities by mid-2026:
- Streaming & Studios, led by Zaslav, will house HBO, Warner Bros. films, and streaming services (soon returning to the HBO Max name).
- Global Networks, led by Wiedenfels, will include TNT Sports, CNN, Discovery, and international broadcast networks.
TNT Sports: A Crown Jewel in Question
The future of TNT Sports is particularly precarious. Once a cornerstone of WBD’s linear and digital strategy, the division now faces a crossroads. Without NBA rights—a key pillar of its brand—TNT’s long-term viability, particularly in streaming, is uncertain. Wiedenfels recently admitted the division’s streaming direction is still “to be determined,” while Zaslav candidly stated that sports content “hasn’t been a real driver” for the Max platform.
This ambiguity looms large as competitors like Amazon, Apple, and NBCUniversal make aggressive sports streaming plays. TNT Sports, now under the Global Networks banner, must either reinvent its digital proposition or risk marginalization in a rapidly evolving ecosystem.
The Bigger Picture
Zaslav’s pay cut is more than a headline—it’s a bellwether. It signals that Warner Bros. Discovery is listening to its shareholders, recalibrating its leadership strategy, and confronting hard truths about its business model. The company is betting that a leaner, more accountable executive team can guide its two emerging entities through uncertain terrain.
But for all the corporate governance progress, one looming question remains: Without the NBA and with an unclear sports strategy, what is the long-term vision for TNT Sports?
Until WBD provides that answer, Zaslav’s trimmed bonus may be just the beginning of a broader reckoning.