this post was submitted on 21 Mar 2024
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[–] AnAngryAlpaca@feddit.de 76 points 8 months ago (15 children)

He gifted himself a ludicrous $193 million compensation package.

Reddit, a 20-year-old company, has yet to turn a profit. In 2023, the platform lost a whopping $90.8 million.

Can someone explain to me how reddit can make a loss, while he pays himself MORE than the loss? Does that not mean that reddit would have made a 113 Million profit before his $193 million compensation package? What kind of business-algebra-gymnastics is at work here?

[–] sushibowl@feddit.nl 64 points 8 months ago (12 children)

Does that not mean that reddit would have made a 113 Million profit before his $193 million compensation package?

No. His normal salary is around 300k a year. This $193 million figure was the presumed valuation of a stock/options package he received ahead of the IPO. It doesn't cost the company anything to pay him in stock, so it doesn't affect the profit/loss calculation.

[–] charleroi2@lemmy.ml 10 points 8 months ago (1 children)

If it doesn't cost anything to company to pay in stocks, why don't they give me like 1m $ value of stock? That would make me very happy and it costs nothing to them anyway

[–] BreakDecks@lemmy.ml 8 points 8 months ago

I know you're just being funny, but the idea is that Spez's shares and resulting influence over a publicly traded Reddit will incentivize investors to buy stock, raising the value of the stock for all shareholders. The problem with this idea is that Spez is an idiot who is actively sabotaging Reddit's long term viability.

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