968
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 23 Feb 2024
968 points (97.4% liked)
Technology
59559 readers
2039 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
How much of that compensation is in stock? It's pretty common for executives to be largely compensated in stock, particularly right before an IPO.
I only point this out because the math isn't necessarily as simple as revenue minus executive compensation. Issuing stock isn't a cash transaction for reddit.
His pay was $300k something. So it was almost all stock. To convert his ownership stake into shares ahead of the IPO as you mentioned.
He supposedly owns around 3-4% of Reddit. And they're trying to IPO at an initial valuation of $5B. So when that goes to shit like it probably will this theoretical $192M drops dramatically.
Ahh, that makes all sorts of sense. The idea that he was paid $193 Million was unbelievable.
You could pay 1,000 moderators $100k for the year and still give Spez $93 Million if that were his salary.
Unless he pumps and dumps them, selling them after the IPO
Selling off shares from insiders is a publicly announced process that involves coordination with the SEC in advance, so "pump and dump" doesn't really apply here. That terminology usually applies to penny stocks that are traded on minor exchanges, where a price increase of mere pennies could represent a very high percentage increase, making manipulating the stock price through fraudulent claims potentially very profitable for the manipulators.
He could sell shares early but that news would also probably very negatively affect the value of the shares he's selling. Not really great when the CEO is not confident of the long term value of his own company's stock.
You can't do that, lol.