4 ms·
Crypto is clearly crashing but I’m more curious if a reckoning will hit FAANG, particularly Google. I know one person there who is the spouse of a good friend,
by seibelj 4y ago
Crypto is clearly crashing but I’m more curious if a reckoning will hit FAANG, particularly Google. I know one person there who is the spouse of a good friend, and they make nearly 7 figures as a middle manager (although I’m unsure what happens with the stock declines and RSUs).
Can these companies support legions of absurdly highly paid people? GOOG is down 25% this year, what will happen when it drops 50%?
- UncleMeat 4y agoGoogle also makes a huge amount of profit. In 2021, they made something like 350,000 of profit per full time employee. Ads are not nearly as fickle as crypto. Somebody making nearly 7 figures as a middle manager is only doing so because they are including stock appreciation in their compensation. That isn't the norm steady state, even for L7s.
- kache_ 4y agoI don't think you understand how much money google makes :P they might slow growth, but I really can't see them laying off people
- randomsearch 4y agoGoogle is a solid business with a bright future. If they actually worked out their cloud offering then it would be even brighter. Crypto is not comparable to companies like Google. If you’re looking for tech companies that might suffer, you’re looking for one trick ponies that can’t innovate - maybe look at Facebook. Google has a strong focus on engineering and academic smarts. That has big downsides that might prevent them from making truly great user-centred products, but it’s also a robust philosophy that will ensure that they endure. I expect Google to be around in 2100. Facebook no. Coinbase absolutely not.
- bombcar 4y agoI believe that most grants are "money value of stocks at time of grant" so if you're getting 1m over 4 years, you get however many shares 1m would have bought at the time of the grant. This of course means that if you were granted just before a downturn, the "reason to stay" isn't as powerful as it was before. And I think the big names will start slowing down hiring and offering less, probably salaries stay the same but the grants start to decline.
- endisneigh 4y agoGoogle makes millions per employee, they’ll be fine until people stop buying ads and they stop making money.
- onlyrealcuzzo 4y agoTechnically ~$1.6M per employee: https://csimarket.com/stocks/GOOG-Revenue-per-Employee.html https://csimarket.com/stocks/GOOG-Revenue-per-Employee.html
- Ekaros 4y agoNetflix is likely the one getting in trouble. Rest likely will do somewhat stable, though stock price might be flat or downwards for a while.
- puranjay 4y agoNot too hot about Meta. TikTok has been eating their lunch and they can't seem to catch up.
- onlyrealcuzzo 4y agoIIUC, RSUs are printed out of thin air. RSU pay - especially at higher levels - makes up >50% of total compensation. If stock prices go up or down - you'll certainly make more or less money. But the effect on the company is minimal. Revenue is what matters to be able to afford to pay the base salary and bonus.
- desas 4y agoGoogle made $18000000000 profit last year. It could pay employees out of cash revenue, not out of stock prices if it wanted. I don't know about Google in particular but I think RSUs are generally issued in terms of an amount of stock, not a dollar amount. As the share price goes down then Google becomes less competitive against companies with a more stable stock price who also issue RSUs.
- adam_arthur 4y agoShare price falling makes RSUs more attractive for new employees, assuming the company continues to issue the same number of shares. It's bad for existing RSU holders though