Reddit founder and CEO Steve Huffman gifted himself a stunning $193 million compensation package — while mods get nothing.
    • the_seven_sins@feddit.deEnglish
      0·
      6 months ago

      The mods are working ‘for their community’. It’s just that that’s happening on a profit companys platform.

  • AnAngryAlpaca@feddit.deEnglish
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    6 months ago

    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.nlEnglish
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      6 months ago

      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.

      • Psythik@lemmy.worldEnglish
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        6 months ago

        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@feddit.deEnglish
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          6 months ago

          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.

  • Zacryon@feddit.deEnglish
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    6 months ago

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

    • CitizenKong@lemmy.worldEnglish
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      6 months ago

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

      • Zacryon@feddit.deEnglish
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        6 months ago

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