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>>the board of directors reduced Mr. Chesky’s base salary from $110,000 to $1, set his target bonus at $0, and granted him a long-term, multi-year equity award
by godelmachine 6y ago
>>the board of directors reduced Mr. Chesky’s base salary from $110,000 to $1, set his target bonus at $0, and granted him a long-term, multi-year equity award comprised of 12,000,000 RSUs (the “Multi-Year Award”).
Its quite surprising that CEO of Airbnb should make just $110k/ annum in base salary before the company goes public. I would expect it to be around $500k.
- tallgiraffe 6y agoHe's got a place to live, and food to eat, and he spends 200% of his time at work. At that point money is really just a thing that idles in the bank.
- inerte 6y agoThat's not at all how most rich people behave. They want more money, and they wanna make sure nothing stops them from getting even more.
- marcinzm 6y agoNo, money is the thing you use to allow yourself to spend 200% of your time at work. Private tutors to school your kids so you don't have to. Cleaning services so you don't have to spend time cleaning. First class plane tickets so you can relax, sleep or work on the flight. Private driver or Ubers so you can work while driving places. A personal assistant to book travel, appointments and everything else mentioned so far.
- enahs-sf 6y agoI'm sure he has an EA at the company's expense at this point.
- TedShiller 6y agoNone of the items you mentioned cost much
- nickjj 6y ago> None of the items you mentioned cost much The average private driver salary's in NYC is about 60k a year according to Google btw[0]. The average yearly -household- income in the US is 68k. It's a massive luxury to be able to afford such a thing. [0]: https://www.quora.com/How-much-does-a-full-time-driver-cost-in-NY https://www.quora.com/How-much-does-a-full-time-driver-cost-...
- pathseeker 6y ago"or Ubers"
- marcinzm 6y agoUber XL or black (need space and comfort to work efficiently) for 1 hour a day probably adds up to $200/day or around $50k/year. Which isn't cheap. edit: That's a rough estimate and probably a low estimate. You'd be using Uber for commuting, going to work social events, driving kids on weekends, driving out of the city on vacation, etc.
- FDSGSG 6y ago>The average private driver salary's is about 60k a year according to Google btw Wow, that's crazy. I pay 28000USD/yr in London, most of my friends pay about the same.
- fakedang 6y agoWow, you're lowballing your chauffeur... Explains why mine loves working with me.
- jen20 6y agoPresumably this would be a perk provided by Airbnb directly rather than employed by the CEO himself?
- elwell 6y ago> he spends 200% of his time at work Perhaps the money goes towards cloning costs?
- quickthrower2 6y agoOr some kind of space-time warp drive
- tyre 6y agoHe has almost certainly sold stock already. $110k rounds to zero compared to even just this RSU grant. The salary is symbolic
- beambot 6y agoIt's much more tax efficient for Chesky to get loans against his equity in lieu of cash compensation -- especially if he believes that the equity will grow dramatically in value due to an IPO.
- Marciplan 6y agoHi! Random q, but where could I read more on this specific topic? :)
- toomuchtodo 6y agoFor public securities, margin or a pledged asset line. If it's private equity (structured lending), you'll need to speak with a banker who can structure a deal specifically for you based on an illiquid PE holding.
- Marciplan 6y agoThank you :)
- dmarlow 6y agoTake a look at PAL, pledged asset lines or margin loans.
- Marciplan 6y agoThx! :)
- pathseeker 6y agoI've heard this before, but what advantage does the loan have? Doesn't the CEO still pay just as much tax when he/she sells the stock to pay down the loan? Is it just to allow the stock a chance to appreciate?
- benmller313 6y agoI'd guess just savings on paying capital gains tax vs income tax?
- maerF0x0 6y agoAlso the high paid CEO tax of SF likely means he can avoid the tax in future years by granting a lot today... https://arstechnica.com/tech-policy/2020/11/overpaid-executive-tax-in-sf-hits-firms-that-pay-ceos-100x-more-than-workers/ https://arstechnica.com/tech-policy/2020/11/overpaid-executi... as I understand it the value of the RSUs is on the _grant date_ for such purposes. (and not at vesting)
- nerdkid93 6y agoThat's not how taxes on RSUs work (at least federally in the US). Nothing happens when RSUs are granted because they have no value until they vest. Once the RSUs vest, you are taxed based on the cost basis of $0 (since you pay nothing for RSUs). Options on the other hand are a different beast.
- maerF0x0 6y agocorrect I was referring to the rules, according to a 3rd party, for the SF tax