Question

Discuss the Shareholder Concerns in details of ""Netflix"" according to:

Ownership structure: Start by looking at proportions of the outstanding stock held by institutions, insiders and individuals. This data is generally available in public sources, in most countries.

• How many stockholders does the company have?
• What percent of the stock is held by institutional investors?
• Does the company have listings in foreign markets? (If you can, estimate the percent of the stock held by non-domestic investors)

• Who are the insiders in this company? (Besides the managers and directors, anyone with more than 5% is treated as an insider)
• What role do the insiders play in running the company?
• What percent of the stock is held by insiders in the company?

P.S mention resources and citations for your answer.

Answer 1

1. From the available public sources its seen that , Top 10 Stockholders of Netflix are -

i. Capital Research & Management Co. :

Stake - 7.74% , Shares owned - 34,111,988 , Total value - $17,057,017,360

ii. The Vanguard Group, Inc.

Stake - 7.23% , Shares owned - 31,875,106 , Total value - $15,938,509,253

iii. Fidelity Management & Research Co

Stake - 4.82% , Shares owned - 21,245,736, Total value - $10,623,505,372

iv. T. Rowe Price Associates, Inc.

Stake - 4.68% , Shares owned - 20,626,346, Total value - $10,313,791,790

v. BlackRock Fund Advisors

Stake - 4.44% , Shares owned - 19,579,924, Total value - $9,790,549,398

vi. SSgA Funds Management, Inc.

Stake - 3.77% , Shares owned - 16,613,245 , Total value - $8,307,120,897

vii. Capital Research & Management Co.

Stake - 3.43% , Shares owned - 15,137,030, Total value - $10,313,791,790

viii. Capital Research & Management Co.

Stake - 3.10% , Shares owned - 13,676,170, Total value - $6,838,495,285

ix.  Jennison Associates LLC

Stake - 2.06% , Shares owned - 9,099,165, Total value - $4,549,855,475

x. Baillie Gifford & Co.

Stake - 1.75% , Shares owned - 7,713,485, Total value - $3,856,973,905

2.  Institutional investors hold  81.94% of the outstanding shares.

4.  From the available public sources it is seen that top insiders of this company are -

Ms. Leslie J. Kilgore , David A. Hyman, Mr. Richard N. Barton, Mr. Bradford L. Smith, Ms. Rachel Whetstone, Dr. Mathias Dopfner

5. Role of insiders in running a company -

Insider is a term describing a director or senior officer of a publicly traded company, as well as any person or entity, that beneficially owns more than 10% of a company's voting shares. For purposes of insider trading, the definition is expanded to include anyone who trades a company's shares based on material nonpublic knowledge. Insiders have to comply with strict disclosure requirements with regard to the sale or purchase of the shares of their company.

Leslie Kilgore owns a total of 35,196 Netflix shares, representing 0.02% of the company's total shares outstanding. Kilgore has been a non-executive member of the Netflix Board of Directors since January 2012. Before that she served as Netflix's Chief Marketing Officer for 12 years.Kilgore is also a member of the board of directors of Pinterest, Medallia, and Nextdoor.

David Hyman owns a total of 31,610 Netflix shares, representing 0.01% of the company's total shares outstanding.Hyman has served as the company's General Counsel and Secretary since 2002, and is responsible for both legal affairs and public policy.

Greg Peters owns a total of 13,090 Netflix shares, representing less than 0.01% of the company's total shares outstanding. Peters first joined Netflix in 2008 and has served as the company's Chief Product Officer since 2017. He leads the company's product team, which is responsible for designing, building, and optimizing the Netflix experience. Prior to that, he acted as Netflix's International Development Officer. He's also a member of the board of directors of 2U Inc.

6. As of today, Netflix's insider ownership is 0.15%.