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While Snap's poor product decisions and failing business are constantly called out in the media, what I don't see covered as much about the company is that thei

While Snap's poor product decisions and failing business are constantly called out in the media, what I don't see covered as much about the company is that their executives managed to massively enrich themselves by paying themselves huge bonuses right before the IPO and subsequent stock collapse. Their "Chief Strategy Officer" Imran Khan: $100M+ https://www.businessinsider.com/snap-ceo-evan-spiegel-cfo-imran-khan-big-stock-award-bonuses-2017-2018-2 https://www.businessinsider.com/snap-ceo-evan-spiegel-cfo-im... CEO Evan Spiegel": $637M+ (3rd highest CEO payout ever) https://techcrunch.com/2018/02/22/snap-ceo-evan-spiegel-got-a-637-million-bonus-last-year/ https://techcrunch.com/2018/02/22/snap-ceo-evan-spiegel-got-... I'm surprised there hasn't been an investor lawsuit/class action yet. The whole thing seems like a massive pump and dump scam.

harryh 8y ago
My understanding is that Evan's bonus was agreed upon years in advance when Snapchat turned down FB's various offers. The investors, represented by the board, wanted him to go for a large, somewhat risky, IPO instead of taking a sure thing and incentivized Evan to do so.
- kuhhk 8y ago
  If true, this should be in their S-1 SEC filing right?
  - umeshunni 8y ago
    It is in their S-1 (page 135): https://www.sec.gov/Archives/edgar/data/1564408/000119312517029199/d270216ds1.htm#rom270216_13 https://www.sec.gov/Archives/edgar/data/1564408/000119312517... What's interesting is that these execs, including the founder/CEO got renegotiated packages just before the IPO.
draw_down 8y ago
To quote my old boss: that’s capitalism, baby.
roymurdock 8y ago
there is a lawsuit pending that focuses on snapchats potential misrepresentation of instagrams size and effect on the mkt investors should've done their own due diligence on that, what i believe is more likely is that snapchat misrepresented its user numbers pre IPO as alleged by a fired employee in 2015 investors wouldn't have cared if the stock went up, but it went down so they need to find an actual tangible way that snapchat lied to them to recoup any money from a bad bet

harryh 8y ago

My understanding is that Evan's bonus was agreed upon years in advance when Snapchat turned down FB's various offers. The investors, represented by the board, wanted him to go for a large, somewhat risky, IPO instead of taking a sure thing and incentivized Evan to do so.

kuhhk 8y ago
If true, this should be in their S-1 SEC filing right?
- umeshunni 8y ago
  It is in their S-1 (page 135): https://www.sec.gov/Archives/edgar/data/1564408/000119312517029199/d270216ds1.htm#rom270216_13 https://www.sec.gov/Archives/edgar/data/1564408/000119312517... What's interesting is that these execs, including the founder/CEO got renegotiated packages just before the IPO.

draw_down 8y ago

To quote my old boss: that’s capitalism, baby.

roymurdock 8y ago

there is a lawsuit pending that focuses on snapchats potential misrepresentation of instagrams size and effect on the mkt investors should've done their own due diligence on that, what i believe is more likely is that snapchat misrepresented its user numbers pre IPO as alleged by a fired employee in 2015 investors wouldn't have cared if the stock went up, but it went down so they need to find an actual tangible way that snapchat lied to them to recoup any money from a bad bet