The CEO is paid $193M, this has nothing to do with any profit reddit makes.
Which, they have never made a profit, "Now, Reddit — which is not yet profitable"......"Reddit reported a net loss of $90.8 million in 2023, a narrower loss than the $158.6 million loss it netted in 2022." https://www.cnn.com/2024/02/23/tech/reddit-ipo-filing-busine...
Pretty wild that a CEO can make that sort of money while running an unprofitable business. I can't imagine thinking so much of myself that I would value myself at 100s of millions. I wonder if there's some sort of pathology behind it.
Ok, but when you look at the forecast, and see an expected loss of 90 million, maybe the CEO should say, perhaps if I was paid 90 million less then we will be in profit, and I would still have enough money to retire in excessive luxury.
Clearly there's a group of people of people who are selfish and think so highly of themselves that this sort of logic will never make sense to them. Any company or executive that says they care about the workers, customers, or cause and is making 8+ figures is lying whether they realize it or not. I realize some people will make the argument that the comp needs to be so high to attract top talent. But there's a pool of talented people who would do it for less. Plenty of non-profits or mission-driven companies have lower paided executives.
Doesn't sound like the CEOs problem; he isn't there to make personal sacrifices to make the company profitable and I don't think anyone would pretend he is. If anyone should be making that observation it is whoever signs off on his compensation.
Although the compensation package won't cash so the situation isn't quite that simple.
It's baffling how shareholders are so tolerant of a CEO looting the company for substantial fractions of its total value annually. But it's very widespread.
It can only be viewed as a sacrifice if you believe he legitimately deserves that much money. That money could be used to increase employee comp instead of shareholder value. That's a lot of money for running an unprofitable business. I wish I was so delusional that I thought I deserved 100s of millions for running an unprofitable company.
Revenue $804m (!), expenses $944m (!). But I'm having trouble working out which of the expenses breakdown entries has the board salary in. And if it's compensation in stock, does that have to be expensed?
Sure, but there's a sort of nominal expectation that post salaries, especially salaries of that magnitude an entity has some profit. The obvious exception being they had an unprofitable year but have a gigantic pile of money sat in a bank somewhere.
> $193M compensation to lead a business to unprofitability is a problem. Period.
The compensation did not lead to unprofitability—it contributed to it. And we have no evidence by which to claim it would have been worse under less-paid management. (Well, with Reddit, we might.)
I’m not defending the compensation per se. But arguing everyone at any profitable entity should be paid less until the venture is profitable, irrespective of any other facts, is silly. Particularly when it comes to non-cash compensation.
Which, they have never made a profit, "Now, Reddit — which is not yet profitable"......"Reddit reported a net loss of $90.8 million in 2023, a narrower loss than the $158.6 million loss it netted in 2022." https://www.cnn.com/2024/02/23/tech/reddit-ipo-filing-busine...