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It's a gesture, but the issue is that salary and bonus are often a smaller part of executive compensation. The equity grant that they receive is often millions
by HollywoodZro 4y ago
It's a gesture, but the issue is that salary and bonus are often a smaller part of executive compensation.
The equity grant that they receive is often millions more than the salary and the company performance bonus.
I think forgoing the equity and instead adding it to the severance pool would be truly owning up to the decisions made by executive management.
- fatnoah 4y agoLooking at SEC filings, he received a grant of 612,499 shares of stock on July 8, vesting quarterly over 4 years. That means ~153k shares will vest in 2023. Zoom stock is up $4 based on the announcement, making his RSUs worth over $600k more. He gave up just over $300k in cash compensation to do so. That's an ROI of 100% in one day.
- anigbrowl 4y agoIt would have gone up anyway just based on the workforce cuts, no? Also, I think it's better to look at the price over time rather than assume the pop from an announcement is the new baseline. It's not that I think the guy is a saint or anything, but many CEOs conduct layoffs and write about how sad they are without making any financial sacrifice. So even a limited gesture of giving up ~30% of his potential gains this year is unusual by prevailing norms.