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He is taking a 98% paycut on salary and foregoing his bonus, but I wonder what his equity based comp is as a % of his total comp. My guess is he is mostly compe
by par 4y ago
He is taking a 98% paycut on salary and foregoing his bonus, but I wonder what his equity based comp is as a % of his total comp. My guess is he is mostly compensated in equity.
- olliej 4y agoMy thought exactly. How about resetting unvested equity to zero or some similar “I got all these grants while apparently mismanaging the company so maybe I should not have”
- swyx 4y agoso binary. he still ran the company. overhiring doesnt necessarily equate to mismanaging.
- olliej 4y agoIf you're firing 15% of your employees it's mismanagement. Either you didn't need the additional staff, or you had an opportunity that needed that staff and you failed to deliver on it and are now discarding those people like garbage. But apparently we're ok with the binary of "management screwed up" -> "individual employees no longer have a job or health insurance".
- s1artibartfast 4y agoHow about you needed staff, payed them well, and no longer need them? Is this strictly impossible?
- shapefrog 4y agoHe owns 22% of the company already.
- olliej 4y agoIt’s not how much he owns, it’s that executive comp is often heavily weighted to equity not salary: dropping your salary by 98% only matters if that salary represents a significant amount of your actual income.
- whimsicalism 4y agoYou all are talking past each other. If he owns 22%, most of his "comp" will just come from the company being valued higher.
- chippiewill 4y agoWith the proportion of the business he owns the majority of his comp will be in growing the stock price. He'll be taking a massive hit without the salary decrease from market conditions.
- maerF0x0 4y agoLikely earning ~50% less in the past year due to stock valuation decline. Possibly much less from underwater options.
- esoterica 4y agoYou’re missing the point entirely; if you’re a founder CEO who owns a large chunk of the company, then your existing ownership dwarfs all of your salary, bonus, and equity compensation. You get “paid” in share price increases, not cash or stock. Surrendering any part of your compensation is just a gimmick.
- msoad 4y agoThe value of his $4b equity went up by about 5% after release of this news.