This excerpt taken from the NFLX DEF 14A filed Mar 31, 2006.
The Companys directors do not currently receive cash for services they provide as directors or members of Board committees but may be reimbursed for their reasonable expenses for attending Board and Board committee meetings. Mr. Barton received options to purchase 100,000 shares of the Companys common stock upon joining the Board in May 2002. No other directors were granted options upon joining the Board.
Effective July 1, 2005, the Board approved a Director Equity Compensation Plan under the Companys existing 2002 Stock Plan. The Director Equity Compensation Plan provides for a monthly grant of stock options to each non-employee Director of the Company in consideration for services provided to the Company and subject to the terms and conditions of the 2002 Stock Plan. The actual number of options to be granted is determined by the following formula: $10,000 / ([fair market value on the date of grant] * 0.25). Each monthly grant shall be made on the first trading day of the month, shall be fully vested upon grant and shall be exercisable at a strike price equal to the fair market value on the date of grant.