11–20 of 63 posts
34 Million a year for 220 employees? I know that includes office space, equipment, and benefits, but that still seems like a lot to me. Edit: I must have had a brain fart when I wrote this, because I was thinking over a million per employee. Now it seems too low.
So SNAP lays off another 7% of their workforce to save $34M a year whilst their CEO pockets $638M in compensation (3rd highest CEO payout ever) before they're remotely close to profitability. Not sure if company-wide layoffs and paying their CEO more are going to achieve their growth/profitability aspirations.
Wonder how long the american proletariat will accept that?
34 Million a year for 220 employees? I know that includes office space, equipment, and benefits, but that still seems like a lot to me. Edit: I must have had a brain fart when I wrote this, because I was thinking over a million per employee. Now it seems too low.
This is why the 10/20/30/40 vesting schedule which companies like Snap have is so problematic. Snap is laying people off and are saying that they expect to save a large amount of costs related to stock based compensation because of it (given they are a business I don't blame them for this line of thinking). However, from the laid off employee perspective this is pretty bad: 1) they worked hard to get Snap to this poi…
What?! I've never heard of this, other companies follow this madness? Who are they so I can stay away?
This is why the 10/20/30/40 vesting schedule which companies like Snap have is so problematic. Snap is laying people off and are saying that they expect to save a large amount of costs related to stock based compensation because of it (given they are a business I don't blame them for this line of thinking). However, from the laid off employee perspective this is pretty bad: 1) they worked hard to get Snap to this poi…
> the 10/20/30/40 vesting schedule which companies like Snap have is so problematic. What?! I've never heard of this, other companies follow this madness? Who are they so I can stay away?
So SNAP lays off another 7% of their workforce to save $34M a year whilst their CEO pockets $638M in compensation (3rd highest CEO payout ever) before they're remotely close to profitability. Not sure if company-wide layoffs and paying their CEO more are going to achieve their growth/profitability aspirations.
Earlier quoted context omitted.
> the 10/20/30/40 vesting schedule which companies like Snap have is so problematic. What?! I've never heard of this, other companies follow this madness? Who are they so I can stay away?
Amazon, actually. It's something like 5/15/40/40, maybe a current/former employee can chime in.
Source: Current AMZN employee
Earlier quoted context omitted.
Amazon, actually. It's something like 5/15/40/40, maybe a current/former employee can chime in.
That's correct. Source: Current AMZN employee
So SNAP lays off another 7% of their workforce to save $34M a year whilst their CEO pockets $638M in compensation (3rd highest CEO payout ever) before they're remotely close to profitability. Not sure if company-wide layoffs and paying their CEO more are going to achieve their growth/profitability aspirations.
The CEO compensation is coming from diluting shareholders, he's receiving stock compensation there. That $638m doesn't cost them cash. Is it morally obnoxious to be rewarding an outsized pay package on a business that is financially struggling to survive? Of course, it's reprehensible in my opinion, however that value judgment is entirely subjective in nature. What kind of business rewards huge stock compensation plans while accelerating toward a brick wall of insolvency?
What's not subjective, is cash going out the door and being unable to keep the lights on.
Snapchat firing employees improves their extremely bad cash burn situation. That's why they're doing it. In about five or six quarters at the current rate of burn, Snapchat will be in dire condition from a cash position, which will threaten their ability to continue as an operating business. That's especially true if growth doesn't dramatically pick up soon. When they hit seven or eight quarters out, they're on bankruptcy watch unless they raise a lot of capital or slash expenses deep (they could obviously sell the business as well).