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set_secret ,

fuck that guy

0nekoneko7 ,
@0nekoneko7@lemmy.world avatar

Reddit CEO is like. My family needs a 10-million dollar mansion and a 2 new Ferrari.

danc4498 ,

Tax these mother fuckers. He probably paid next to no tax on that wage. Instead he should have paid 70% in taxes at least

phdepressed ,

Federal income tax currently maxes at 37%

danc4498 ,

Right, it should be >70% for people making this much money. This way the company will put the money into lower paying wages rather than massive single person paydays.

GroundedGator ,

Fine these mother fuckers! We need legislation to limit income disparity between insiders and grunts. It needs to work on total compensation and include contract workers. Any insider making more than 15x the average or median income should have to pay 50% of the difference and that fine should increase every year it’s not corrected.

skozzii ,

You most definitely pay more taxes than any of these people. They have so many tax loopholes for assets and write offs that they might even get a rebate or credit back. So they might be getting your money as well.

Etterra ,

It doesn’t matter what he says - it’s pretty obviously just greed to any outside observer who doesn’t think like greedy CEOs do.

Zacryon ,

Capitalism – in it’s current form, a system where some exploit others in order to make profit.

CitizenKong ,

I think you mean where rich people rigging the system exploit people who have to follow the rules.

Zacryon ,

That’s also what I meant by capitalism “in it’s current form”. Yes. ^^

apemint ,
@apemint@lemmy.world avatar

That’s literally every system.
Yes, communism too. Especially communism.

CitizenKong ,

You keep using that word. I don’t think it means what you think it means.

apemint ,
@apemint@lemmy.world avatar

I lived in both. Maybe I have more of an insight than you…

ThrowawayPermanente ,

You need to read more theory and spend less tine in the real world

CitizenKong ,

Dito.

cordlesslamp ,

Quick, contribute your $34 so he can get a raise next year.

AnAngryAlpaca ,

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?

nehal3m ,

It’s a calculation popularized by fintech bro’s in the late oughties.

It’s called pulling an FYGM, a fuck you got mine, colloquially known as a rug pull.

sushibowl ,

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.

Traister101 ,

Gotta love that monopoly money

Blackmist ,

Surely it costs $193 million to pay him in stock. That stock would otherwise have been sold for that amount to other people, and he’s getting it for nothing.

sushibowl ,

Because you’re exchanging stock worth $193 million for an equivalent amount of dollars, there’s technically no profit or loss involved in the transaction. In the same manner, when paying stock as a compensation, you secure services valued at $193 million for an amount of shares worth the same: the transaction is entirely equal. So you don’t make or lose any money by paying in stock.

Of course, the trick is that the value of the CEO’s work for one year can be whatever he says. If your claim is that they could have gotten more value out of the stock had they sold it in the IPO, I think you are absolutely correct in that regard.

maniclucky ,

My brain despises econ and I always struggle with it. But that first paragraph smells like “MBAs cooked up a justification for why they don’t pay taxes that doesn’t actually make any sense”.

The second bit makes me wonder “why don’t we have some authority on evaluating the worth of CEOs?”. Insert joke here about that worth being 0. And then I remember that the CEOs are the ones that would have to pay the government to make that rule.

Blackmist ,

The same argument can be had for paying in cash. Yet I still have to pay tax.

In fact I should get money back, because the services I provide to the company outweigh the cost of my wages (otherwise they wouldn’t pay me). I’m making a damn loss over here!

charleroi2 ,

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 ,

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.

Psythik ,

Yes but where is the $300k coming from if they’re losing $90.8m a year? How can they afford to stay in business? Before they went public, who was foolish enough to invest in a company that has never turned a profit? The money doesn’t just come out of thin air. Someone has to be giving it to him.

If I was rich and started a company that lost $90.8m a year, I’d shut down after less than a year before I went broke and homeless. How can a company that never turns a profit make enough money to pay any employee, let alone the CEO?

AnAngryAlpaca ,

Reddit has a lot of users that spend a lot of time there, so it is advertising potential, and a lot of Brands pay for ads on Reddit. Investors hope they will eventually make enough ad revenue to turn a profit.

However Twitter was and is in the same boat, it is a big site with many users, but was never profitable.

sushibowl ,

Before they went public, who was foolish enough to invest in a company that has never turned a profit?

You’d be surprised. The basic strategy of losing money hand over fist for years to grow yourself to as large a user base as possible, before finally aggressively monetizing that user base, is well established in silicon valley. Investors would not even raise an eyebrow at the loss numbers posted by Reddit because of how exceedingly common that is.

And it has worked several times, making some people ridiculously wealthy. Good examples are Amazon, Facebook, and Uber. So usually companies on this level have raised hundreds of millions to sometimes billions of dollars in investment capital, allowing them to operate at these levels of losses for years at a time.

tgxn ,
@tgxn@lemmy.tgxn.net avatar

Uber yeah, but the others are probably profitable overall.

sushibowl ,

So is Uber, since this year. My point is, all of these companies ran hundreds of millions of dollars in the red for years before turning a profit.

John_McMurray ,

Sure. You’re not an accountant, neither is whoever wrote that, it’s a bunch of bullshit and the IRS made sure they got paid.

Stern , (edited )
@Stern@lemmy.world avatar

Tim Cook makes 1/3 of that and Apple is worth about 2-300 times what reddit is.

appleworld.today/ceo-tim-cook-takes-a-pay-cut-in-…

reuters.com/…/global-markets-apple-2023-07-03/

theonyltruemupf ,

Millions of dollars of pay are always absurd but this really puts it into perspective

BruceTwarzen ,

I always gear that money vorrupts everyone at some point, and i really wonder if that is true. Like i couldn't imagine making a few million dollars a year and don't say fuck it after a year to never be seen again

FlyingSquid ,
@FlyingSquid@lemmy.world avatar

Same. I’d take my $30 million or whatever it was after the first year, quit, buy a modest house, put the rest into savings, and live off the interest. And you can live really well off the interest of $30 million.

beebarfbadger ,

It kinda does feel like spez is just testing how much he can squeeze out of the leftover marks at reddit before leaving the carcass out to dry.

mannycalavera ,
@mannycalavera@feddit.uk avatar

Reddit founder and CEO Steve Huffman gifted himself a stunning $193 million compensation package — while mods get nothing.

Reddit CEO: Suck it plebs.

Probably.

kokesh ,
@kokesh@lemmy.world avatar

I’ve said it before and I’ll say it again (not on Reddit): Fuck Spez.

Vipsu ,
@Vipsu@lemmy.world avatar

Hopefully EU and US regulators will stomp that site to the ground as selling user generated data for AI companies sounds like something most people on Reddit did not sign in to.

mannycalavera ,
@mannycalavera@feddit.uk avatar

Will they fuck 🤣🤣

Womble ,

They almost certainly “agreed” to terms letting reddit do whatever they want with their posts, and this would likely been seen as reasonable if challenged in court as they were getting a free service in return.

lemmyvore ,

You can’t sign away certain rights under EU law, and any terms that attempt to do that are considered void.

Womble ,

Do you have any reason to think that this is one of those rights? Especially given that signing over copyright absolutely is something you can agree to in a contract.

lemmyvore ,

I mean you can’t sign away rights to your personal data.

You’re not signing away copyright when you post to Reddit, btw. It would complicate things too much. What you’re doing is granting Reddit a perpetual, irrevocable license to use the copy of your post that ends up in their server.

phdepressed ,

EU and maybe gdpr and other similar regulation matter. The US hasn’t updated our regulations on the tech sector, we’re like 30y behind.

starman2112 ,
@starman2112@sh.itjust.works avatar

If the company does well, I will do well

And if the company doesn’t do well, he gets to fuck off and retire on more money than ten people can reasonably spend in a lifetime

MeekerThanBeaker ,

Look at that. Now there’s a face who only cares about money. Kids, if you look into a mirror and have that kind of face, you may be an asshole. Just saying.

southsamurai ,
@southsamurai@sh.itjust.works avatar

This dude underestimates how fucking crazy people are. He keeps this kind of thing up, he’s going to end up in the news for some nutter doing something unpleasant to him.

Shouted ,

Tbh he should get the money if he somehow convinced all those mods to work for free

Pohl ,

Wall Street investors gave him the money. Him knowing that they would be dumb enough to give it to him is the reason he got it. Which is a weird way of “earning” money but it kind of is.

Despite our feelings on the company, Wall Street ate that shit up, thus his equity package is worth all that money. Why did Wall Street like Reddit stock so much? I sure don’t fucking know, which is why I never thought to ask them for hundreds of millions of dollars for a company that loses money hand over fist.

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