Reddit kind of anticipates this critique in its investor docs, and argues that it didn’t really start operating as a serious business until 2018 when it finally started “meaningful monetization efforts” — that is, trying to make money for real.
But that’s still six years ago. What has Reddit been doing since then?
One big, obvious answer: It has been hiring a lot of engineers and spending a lot of money on their salaries…
…What am I missing? I asked Reddit comms for comment but they declined, citing the company’s quiet period before the IPO.
And, interestingly, they lost $91 million last year. If the CEO had instead earned $100 million last year, the company have made a multi-million dollar profit (if only just). If it had been $10 million (still way overpaid for any single person, I’d argue), they’d be nearing the hundreds-of-millions-per-year profit scale.
I’ll never understand companies paying their CEOs hundreds of millions while they’re losing money hand over fist…
Not quite. He’s paid mostly in stock, not cash.
Still an absurd amount of cash for a single person in a single year. You can effectively own most people for $4,000,000 (40 years at $100k a year.)
This guy is making half a million every single day. Imagine buying someone else’s life’s work every week.
Or, optionally, he could buy a nice house every single day.
Ultimately, cash is a measure of what society owes you.
One person simply can not produce the amount of effort that should be required to earn that amount of debt from society.
He’s literally trying to build up and stock his doomsday bunker.