Netflix Approves 10-for-1 Forward Stock Split to Make Shares More Accessible for Employees
Netflix has announced a 10-for-1 forward stock split of its common stock, a move the company says is designed to make its shares more accessible to employees participating in the stock options program. The board approved the split on Thursday, noting that it will substantially increase the number of outstanding shares while lowering the price per share by the same factor. The company emphasizes that this adjustment is meant to reset the market price into a range that is easier for employees to own, without changing the company’s underlying value. As a result, Netflix stock will appear more affordable to participants in equity compensation plans, and the split could improve liquidity in trading. Investors should expect the overall market capitalization to remain the same, as the proportional increase in shares is offset by the price reduction. Trading will be adjusted to reflect the 10-for-1 ratio after the split takes effect. This move aligns with industry practice where forward splits are used to broaden investor accessibility and enhance the perceived value of stock-based employee incentives.