Dare ObasanjoSep 21, 2024

Zoom plans to reduce stock based compensation (SBC) by eliminating annual equity grants and reducing stock offered to new hires. The company has said this practice is unsustainable.

Downward pressure on tech compensation given the job market has been inevitable. Similarly, less profitable companies competing with FAANG for compensation was always a zero interest rate phenomenon.

Zoom, Salesforce & Workday won’t be the last.

https://finance.yahoo.com/news/zoom-cut-back-stock-based-200956939.html

Zoom to Cut Back on Stock-Based Compensation, Joining Salesforce, Workday

(Bloomberg) -- Zoom Video Communications Inc. is reducing the practice of paying workers with company stock, joining peers such as Salesforce Inc. and...

Yahoo Finance
Show threadBrendon McLean
@carnage4life I’ve been on the other side, trying structure equity grants to be competitive. What isn’t talked about much, is that it isn’t sustainable without one of two things: growth that massively eclipses the awards, or periodic buybacks. Otherwise you’re materially diluting investors. So yes, zero interest rate phenomenon.
Sep 22, 2024 at 7:18amIvory for iOS