5 ms·

> Yes, but the top brass are racking in tens of millions. I agree that leadership should lead by example. However, tens of millions represent a small fraction

by rewmie 3y ago

> Yes, but the top brass are racking in tens of millions. I agree that leadership should lead by example. However, tens of millions represent a small fraction of the > 100 million hemorrhaging that the company is reporting.

edgyquant 3y ago
10% is not a small fraction
- robertlagrant 3y ago
  Most of it is shares, not cash. Shares aren't comparable to cash here at all.
marcosdumay 3y ago
That tens of millions is supposed to be each, isn't it? It describes the one individual getting the most, but I don't know how it falls down through the hierarchy.
bluefirebrand 3y ago
If you look at the total compensation of top 5 earners at Unity, it's damn close to 100 million. https://www1.salary.com/Unity-Software-Inc-Executive-Salaries.html https://www1.salary.com/Unity-Software-Inc-Executive-Salarie... The CMO alone makes 32 million? Absolutely wild.
- robertlagrant 3y ago
  CMO is the best paid by far, and while it's still a big number, it's only $500k in salary - about the same as a senior Netflix engineer. All the rest is equity, which is only valuable if anyone wants to buy it.
  - ToucanLoucan 3y ago
    > CMO is the best paid by far, and while it's still a big number, it's only $500k in salary - about the same as a senior Netflix engineer. But is the CMO adding that value to the company? Based on their most recent big project being the licensing guffaw that has them hemorrhaging users, I would kind of say... no?
    - signatoremo 3y ago
      How much value do you think you add to your employer? Your value is based on how the market values you, not a specific dollar amount that your lines of code generate (if you are a developer). Similarly the CMO’s compensation is based on how the market values that job. Does the person make more than CMOs of similar companies? If you suck at coding, you’d likely have a hard time landing a new job. If the Unity’s CMO sucks at doing their job, it’d be a stain in their resume, although it’s likely that they can still have a lucrative job in the future (Unfortunately that’s the reality)
    - robertlagrant 3y ago
      > But is the CMO adding that value to the company? Based on their most recent big project being the licensing guffaw that has them hemorrhaging users, I would kind of say... no? Maybe, but that's a totally different topic.
  - bluefirebrand 3y ago
    I dunno kinda seems like even if they sold the equity at a fraction of the value they could still easily double that salary or more.
    - robertlagrant 3y ago
      Yes, but that isn't money that can be used to rescue the company. It only materialises if people think the shares are worth buying. If a company is selling its own shares to prop up operational costs, those shares will be worth very little very quickly.
- deleted 3y ago
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- jcranmer 3y ago
  If my understanding of finances is correct, the total compensation numbers you're citing are almost meaningless from a cash flow perspective. Most of the compensation is in stock, and issuing new stock as compensation doesn't really cost the company anything. Buying back the issued stock is where the stock compensation would have a negative impact on cash flow.
  - guru4consulting 3y ago
    I guess it DOES cost company something.. goes directly to their profit/lost statement (of course if they are sincere to follow GAAP standards). And I do not understand the rationale when people say salary alone matters and stock compensation does not matter until the gains are realized. It still is an asset even if the values fluctuate. I will be very happy to take the risk of having no salary and millions of stocks as compensation, especially for a well established market leader like Unity.
    - lotsofpulp 3y ago
      And then you look at your balance when you go to sell and realize it is not worth much. https://www.macrotrends.net/stocks/charts/U/unity-software/market-cap https://www.macrotrends.net/stocks/charts/U/unity-software/m... -28% annual return since going public. https://dqydj.com/stock-return-calculator/ https://dqydj.com/stock-return-calculator/ A relatively riskless investment in sp500 would have earned 11%+ per year since 2019. https://dqydj.com/sp-500-return-calculator/ https://dqydj.com/sp-500-return-calculator/
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rqtwteye 3y ago
"However, tens of millions represent a small fraction of the > 100 million hemorrhaging that the company is reporting" So it's not a big deal if I embezzle a few million dollars. It's just a very small fraction of the overall loss of the company so there is no need to look at that.
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by rewmie 3y ago

edgyquant 3y ago

10% is not a small fraction

robertlagrant 3y ago
Most of it is shares, not cash. Shares aren't comparable to cash here at all.

marcosdumay 3y ago

That tens of millions is supposed to be each, isn't it? It describes the one individual getting the most, but I don't know how it falls down through the hierarchy.

bluefirebrand 3y ago

If you look at the total compensation of top 5 earners at Unity, it's damn close to 100 million. https://www1.salary.com/Unity-Software-Inc-Executive-Salaries.html https://www1.salary.com/Unity-Software-Inc-Executive-Salarie... The CMO alone makes 32 million? Absolutely wild.

robertlagrant 3y ago
CMO is the best paid by far, and while it's still a big number, it's only $500k in salary - about the same as a senior Netflix engineer. All the rest is equity, which is only valuable if anyone wants to buy it.
- ToucanLoucan 3y ago
  > CMO is the best paid by far, and while it's still a big number, it's only $500k in salary - about the same as a senior Netflix engineer. But is the CMO adding that value to the company? Based on their most recent big project being the licensing guffaw that has them hemorrhaging users, I would kind of say... no?
  - signatoremo 3y ago
    How much value do you think you add to your employer? Your value is based on how the market values you, not a specific dollar amount that your lines of code generate (if you are a developer). Similarly the CMO’s compensation is based on how the market values that job. Does the person make more than CMOs of similar companies? If you suck at coding, you’d likely have a hard time landing a new job. If the Unity’s CMO sucks at doing their job, it’d be a stain in their resume, although it’s likely that they can still have a lucrative job in the future (Unfortunately that’s the reality)
  - robertlagrant 3y ago
    > But is the CMO adding that value to the company? Based on their most recent big project being the licensing guffaw that has them hemorrhaging users, I would kind of say... no? Maybe, but that's a totally different topic.
- bluefirebrand 3y ago
  I dunno kinda seems like even if they sold the equity at a fraction of the value they could still easily double that salary or more.
  - robertlagrant 3y ago
    Yes, but that isn't money that can be used to rescue the company. It only materialises if people think the shares are worth buying. If a company is selling its own shares to prop up operational costs, those shares will be worth very little very quickly.
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jcranmer 3y ago
If my understanding of finances is correct, the total compensation numbers you're citing are almost meaningless from a cash flow perspective. Most of the compensation is in stock, and issuing new stock as compensation doesn't really cost the company anything. Buying back the issued stock is where the stock compensation would have a negative impact on cash flow.
- guru4consulting 3y ago
  I guess it DOES cost company something.. goes directly to their profit/lost statement (of course if they are sincere to follow GAAP standards). And I do not understand the rationale when people say salary alone matters and stock compensation does not matter until the gains are realized. It still is an asset even if the values fluctuate. I will be very happy to take the risk of having no salary and millions of stocks as compensation, especially for a well established market leader like Unity.
  - lotsofpulp 3y ago
    And then you look at your balance when you go to sell and realize it is not worth much. https://www.macrotrends.net/stocks/charts/U/unity-software/market-cap https://www.macrotrends.net/stocks/charts/U/unity-software/m... -28% annual return since going public. https://dqydj.com/stock-return-calculator/ https://dqydj.com/stock-return-calculator/ A relatively riskless investment in sp500 would have earned 11%+ per year since 2019. https://dqydj.com/sp-500-return-calculator/ https://dqydj.com/sp-500-return-calculator/

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rqtwteye 3y ago

"However, tens of millions represent a small fraction of the > 100 million hemorrhaging that the company is reporting" So it's not a big deal if I embezzle a few million dollars. It's just a very small fraction of the overall loss of the company so there is no need to look at that.

deleted 3y ago

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