This excerpt taken from the NFLX DEF 14A filed Mar 27, 2007.
The Companys compensation philosophy, which is the same for its Named Executive Officers and all other salaried employees, is premised on the Companys desire to attract and retain outstanding performers. As such, the Company aims to provide highly competitive compensation packages for all its key positions, including its Named Executive Officers. The Companys compensation practices are guided by market rates and individual performance, rather than by seniority or overall Company performance. Individual compensation is nonetheless linked to Company performance by virtue of the stock options granted by the Company.
In addition, the Company believes that to attract and retain outstanding performers, it must provide a challenging work environment. To this end, the Company strives to maintain a high-performance culture; that is, an environment in which employees excel in articulated performance values. Below is a list of the Companys articulated performance values (including the explanations of those values provided to employees). The Company evaluates employee performance, including that of the Named Executive Officers, in light of these performance values.
Your judgment calls turn out well (people, technical, business, and creative judgment calls). Your insights are influential and important. You are an expert at what you do and a source that other employees look upon for guidance.
You are very effective in getting work done. What you accomplish amazes people.
You are inventive. You re-conceptualize issues to come up with innovative but practical solutions to hard problems.
You think broadly and strategically. You make subtle connections others miss. You absorb large amounts of information rapidly. You learn fast. You can change directions rapidly when appropriate.
You are known for your candor. You avoid partial truth and tinted truth. You are non-political and straightforward when you disagree with others. You only say things about people you will say to their face.
You are effective communicating both in meetings and 1 to 1. You practice Seek First to Understand, then to be Understood.
You are perceived to be guided by what you think is best for Netflix, rather than best for yourself. You are ego-less when it comes to finding the best ideas and interacting with others.
Colleagues perceive they can depend upon you. You are not prone to flakiness, anger, or impulsiveness.
You care deeply about Netflix success and your colleagues know it. Your thirst for excellence is infectious and inspiring.