this post was submitted on 23 Feb 2024

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363

Reddit Files to Go Public, Reveals That It Paid CEO $193 Million Last Year (www.thedailybeast.com)

submitted 1 year ago by MataVatnik@lemmy.world to c/news@lemmy.world

34 comments fedilink hide all child comments

We live under corporate feudalism

all 38 comments

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[–] halcyoncmdr@lemmy.world 155 points 1 year ago* (last edited 1 year ago) (5 children)

$804M in revenue... $286M to CEO and COO pay alone... so just two officers are worth 35% of the company's annual revenue? Not profit, because it isn't profitable, but just base revenue. Not even Elon Musk is paid that high a percentage of revenue.

Even ignoring the fact reddit doesn't pay anyone for moderation, and all their other reliance on community freebies... That's insane.

And they want to go public with that info? They believe that's a financially sound position to be in heading into an IPO? Spez is even more stupid than I thought.

[–] yeahiknow3@lemmings.world 34 points 1 year ago* (last edited 1 year ago) (1 children)

It’s impossible to underestimate Spez’s intelligence.

[–] casmael@lemm.ee 25 points 1 year ago

Yeah I didn’t really have a frame of reference for this but I was shocked to discover that Tim Cook was ‘only’ paid 62million usd last year. (!) Looking at the success of both companies, Huffman’s pay seems wildly out of proportion.

[–] frezik@midwest.social 13 points 1 year ago

And lost $90M overall. As a certified financial genius, I know how to make Reddit profitable, and it has nothing to do with AI.

[–] RootBeerGuy@discuss.tchncs.de 11 points 1 year ago* (last edited 1 year ago) (2 children)

And they want to go public with that info?

99% of the users left there won't care about this. People here obviously do, but those are the ones that left because of the API debacle. I'd hope they start caring but I am pretty certain they won't.

[–] halcyoncmdr@lemmy.world 3 points 1 year ago

I'm not talking about reddit users. They have no bearing on public investors frankly. Investors don't give a shit about users, just profitability. And an unprofitable company with no end of unprofitability in sight spending 35% of their limited revenue on two executives is ridiculous.

[–] Sprokes@jlai.lu 1 points 1 year ago

People will just use buy and dump strategy.

[–] Hobbes@startrek.website 3 points 1 year ago

I haven’t been on Reddit in a very long time. I wonder if this story or any like it or getting posted on Reddit and surviving for more than five minutes before they’re pulled.

[–] PugJesus@kbin.social 95 points 1 year ago (3 children)

Public filings also showed that Huffman and Reddit’s chief operating officer, Jennifer Wong, were paid $286 million in 2023, including stock and option awards (the value accrues over several years, and the current cash value is substantially lower).

Over a FOURTH of the company's yearly revenue is going to TWO people?

[–] DragonTypeWyvern@literature.cafe 32 points 1 year ago

Well, it's not like anyone here ever gave them free labor, right?

[–] HarriPotero@lemmy.world 29 points 1 year ago* (last edited 1 year ago) (1 children)

The article states that part of the compensation was stock and stock options. Likely incentive programs from previous years that finally paid off.

edit: looks like spez got 600k salary, and the rest of the compensation is solely based on the stock's performance.. and he can't cash that out unless someone is willing to buy all that reddit stock.

[–] Coreidan@lemmy.world 5 points 1 year ago (1 children)

I have no doubt some really dumb bag holders are willing to hold more bags.

[–] STOMPYI@lemmy.world 1 points 1 year ago

Well he has been grooming them on reddit for something... it will be a blood bath

[–] TheBat@lemmy.world 9 points 1 year ago

What are they supposed to spend it on? Developing and implementing features that users and moderators actually want?

[+] DarkNightoftheSoul@mander.xyz 69 points 1 year ago* (last edited 6 months ago) (1 children)

[deleted]

[–] MataVatnik@lemmy.world 47 points 1 year ago* (last edited 1 year ago) (2 children)

Absolutely insane. Considering how shitty their UI is as well as them not paying their mods. This an incredibly naked theft of labour. This is many times more appalling than the 3rd party app debacle.

I went on the reddit post for this article. There is a lot of resignation from the people there, not anger like before. Most of them don't seem to know about the fediverse but I can tell they are truly seeing the death of Reddit and are not sure what to do. As much as I would like to I refuse to make an account to spread the word.

Anyway, I think this is an indication that we will be seeing further growth here on Lemmy.

[–] scrion@lemmy.world 41 points 1 year ago (1 children)

Even if they paid the kid only, I dunno, $100 million, how many community mods could have been paid with the remaining $93 million?

How anyone can believe that it is possible for any single person to do something so meaningful in the same 24 hours we each share every day that they deserve payment so drastically disproportionate, so...disgustingly obscene, really, is beyond me.

[–] Nougat@kbin.social 11 points 1 year ago* (last edited 1 year ago)

Math time!

Let's use nice round numbers to make this easy. We're going to pay community mods a salary of US$100,000.00.

Now, keep in mind that the cost of labor to a business is much more than just salary. Employees need technology, 401K matching, health insurance subsidies, an HR department, management, company stock programs, training - all sorts of things. Again, to make this easy, we'll say that each community mod costs the business another US$100,000.00, at least in the first year. (I would expect that kind of cost to diminish as an employee gains tenure, even if it never vanishes.)

This means that for every US$1M Reddit decides to spend on human capital instead of a CEO whose job appears to be largely centered around cuntery, you get five community mods. Since we are referring to diverting US$93M, that would give us 465 community mods.

This doesn't work perfectly, since employees generally like to be paid in cash, while executives (who already have all the cash they'll ever need) are much more willing to be compensated with stock options and other similar non-cash strategies. Huffman certainly got some kind of pre-IPO stock grants and/or options that make this IPO very personally rewarding for him, and which cost Reddit US$0.00. (One of the drivers of inflation is how public companies get to essentially print money by issuing stocks.)

All that said, you can keep that kind of math in your back pocket whenever you become aware of any executive salary. Every million dollars one dick swinger gets would employ five well-paid workers (or ten who can live independently with some level of comfort). That executive who gets $200M a year? Half of that would put 500 people to work, and not impact the quality of life of the executive at all.

[–] MxM111@kbin.social 6 points 1 year ago

When I once in a while visit Reddit for one of those particularly tailored adult subreddits, I still use old.reddit.com. It is amazing how they managed to screw up UI and still did not fix it.

[–] Octospider@kbin.social 52 points 1 year ago

Content Creators (Users): $0.00
Moderators: $0.00
Spez: $193,000,000

"Fuck you, got mine".

[–] qooqie@lemmy.world 52 points 1 year ago (2 children)

I haven’t been on Reddit since the API mess. How are most users reacting to this news? I would assume either not happy, but ultimately don’t care or ignorant completely.

[–] flipthetube@lemmy.world 42 points 1 year ago

It is and has been a mainstream site for a while now. It’s followed the same trajectory as Facebook. The typical user only cares about the topics that interest them. They have zero interest in what’s happening in the background and are fully accustomed to being blasted in the face with ads 24/7.

[–] MataVatnik@lemmy.world 5 points 1 year ago* (last edited 1 year ago) (2 children)

Recommend reading some of the comments:

https://www.reddit.com/r/technology/s/eEL6RLmxkx

[–] nUbee@lemmynsfw.com 1 points 1 year ago* (last edited 1 year ago) (2 children)

Whoa there, pardner! If posting a reddit URL, please use old.reddit.com instead of www.reddit.com so those of us using privacy tools can still access it.

Edit: Is it just me, or are some reddit links with old.reddit requiring a login?

[–] execia@lemmy.today 3 points 1 year ago* (last edited 1 year ago)

You've been getting blocked too while logged out? "Woah there partner.."? Here's a working link though, https://old.reddit.com/r/technology/comments/1axll4s/reddit_files_to_go_public_reveals_that_it_paid/

[–] MataVatnik@lemmy.world 1 points 1 year ago

Doesn't really work, takes me to the log in page instead of the post

[–] Immersive_Matthew@sh.itjust.works 0 points 1 year ago

Interesting. Similar comments between Reddit and Lemmy on this topic. Like very similar but the tone on Reddit is of the victims whereas here we are wondering why they are still over there when they do not have to be.

[–] Arthur_Leywin@lemmy.world 21 points 1 year ago (1 children)

What's he gonna do with 193 million, trickle down economics? -_-

[–] STOMPYI@lemmy.world 7 points 1 year ago

trickle deez nutz on spez and all oglirarchs

[–] pedestrian@links.hackliberty.org 18 points 1 year ago (1 children)

From the article:

"Public filings also showed that Huffman and Reddit’s chief operating officer, Jennifer Wong, were paid $286 million in 2023, including stock and option awards (the value accrues over several years, and the current cash value is substantially lower)."

Were they actually compensated that amount in cash? Or is this assuming that the stock value actually amounts to something.

Obviously compensated too much, but it looks like the compensation total is being obfuscated for shock value.

[–] MataVatnik@lemmy.world 10 points 1 year ago* (last edited 1 year ago)

Stock options. Which means the valuation is completely arbitrary tbh. It probably isn't worth nearly that much and that's probably why they gave themselves that much. Theyre likely overvaluating themselves. Because as soon as they go public, or as soon as they try to unload these stocks, their value will probably plummet.

Either way, these are stock options they could have given to their mods, it literally costs them nothing.

[–] cpp_hleucka@lemmy.world 12 points 1 year ago

Fuck you, Spez

[–] LemmyIsFantastic@lemmy.world 7 points 1 year ago

Delusional. Feudalism. Reddit 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣

[–] bedrooms@kbin.social 7 points 1 year ago* (last edited 1 year ago) (1 children)

Reddit for reference

[–] MataVatnik@lemmy.world 5 points 1 year ago

For me this is way worse than the 3rd party apps. It's interesting reading the comments there, they know it's over yet they probably will still stay there. It's like an abusive relationship.