Warner Bros. Discovery CEO David Zaslav Faces Major Pay Cut Amid CNN’s Struggles

As Warner Bros. Discovery (WBD) navigates turbulent waters three years post-merger, CEO David Zaslav is set to experience a significant reduction in his compensation package. This comes in light of alarming drops in ratings and revenue for CNN, which was once the flagship of Time Warner.

Major Changes in Zaslav’s Compensation

According to a recent SEC filing, Zaslav’s compensation structure is being overhauled to reflect the company’s current challenges. The revised pay package has garnered attention for its dramatic shift, particularly following criticisms of media executives profiting amidst industry decline.

• New Salary Details: Zaslav’s base annual salary will remain at $3 million.
• Bonus Adjustment: His target bonus will drastically decrease from $22 million to $6 million.

This new structure aims to align Zaslav’s compensation more closely with shareholder interests and long-term value creation.

"We structured the new compensation packages to ensure pay-for-performance alignment," said Chairman Samuel A. Di Piazza Jr. "This will help position the two new leading media companies for success."

CNN’s Declining Viewership and Revenue

As WBD separates its lucrative streaming services from struggling cable operations—including CNN—the ratings landscape for the network looks bleak.

CNN’s Ratings Breakdown:

• Primetime Viewership: Averaged 426,000 viewers, a decline of 18% from the previous year.
• Key Demo (25-54): Just 76,000 viewers, an alarming drop of 21%.
• Total Day Viewership: Averaged 353,000 overall, reflecting a 25% annual decrease.

The dip in CNN’s ratings starkly contrasts with the network’s performance during the Trump administration, where ratings peaked at an average of 2.5 million primetime viewers.

Financial Challenges

Despite a reported 5 million new subscribers to WBD’s streaming services, the company reported a loss of $453 million in Q1 2025. Additionally, revenue fell 10% to $8.97 billion.

Upcoming Structural Changes

Zaslav will now focus on the streaming services, while WBD’s Chief Financial Officer Gunnar Wiedenfels will oversee the newly formed cable division, temporarily referred to as "Global Networks."

"Executives have about 10 years to squeeze every last penny out of that place before rigor mortis," noted an industry insider, reflecting a sense of urgency regarding the cable business.

Potential Cost-Cutting Measures at CNN

With Wiedenfels at the helm of CNN post-breakup, significant cost-saving initiatives are anticipated.

• Talent Pay Reevaluation: Should high-salaried hosts like Anderson Cooper remain on payroll when lower-cost alternatives draw similar ratings?

Dylan Byers from Puck speculated that CNN’s operational costs are increasingly unsustainable.

Implications for Warner Bros. Discovery

The impending changes in Zaslav’s pay structure and the potential downsizing at CNN signal a critical juncture for WBD, as it seeks to recover from a rocky merger. The following factors contribute to the uphill battle ahead:

• High Debt Load: The merger resulted in over $50 billion in debt, pressuring financial resources.
• Cable Industry Decline: As more viewers shift to streaming platforms, traditional cable networks like CNN continue to face existential challenges.

Conclusion

David Zaslav’s reduced pay package epitomizes the broader struggles facing Warner Bros. Discovery and CNN. As the company attempts to realign its strategies to cope with changing media landscapes, the path forward remains fraught with obstacles. For more insights on the evolving media industry, check out Variety for the latest updates.

With CNN’s ratings and WBD’s financial performance under scrutiny, industry experts will be watching closely to see how this plays out in the competitive landscape of media ownership.