• mesamune
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    2254 months ago

    “Earlier this week, Reddit disclosed in a corporate filing that CEO Steve Hoffman sold 500,000 shares, and Reddit COO Jennifer Wong also disclosed that she sold 514,000 shares.”

    If they believed in the platform, they would hold. Yeah looks like they are looking for bag holders.

    • TFO Winder
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      714 months ago

      I think it matters more what percent of their holdings they sell rather than the amount they sell.

        • @NotSpez@lemm.ee
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          284 months ago

          To be fair (and you can probably see by my username I don’t like reddit anymore), I think it makes perfect sense to dispose of a fair portion of your shares in this situation. Firstly, these asshats get paid part of their salary in shares, it’s natural to want to get more security on part of your income. Secondly, with how hard the price rose in the first couple of days, it makes sense. But people are welcome to disagree, of course.

          • @msage@programming.dev
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            254 months ago

            How does that respond to the original idea, that is:

            if they believed in the company, they would hold their stock.

            You are not a genius for selling your company’s stock after IPO, you are a grifter. Doesn’t matter how many voting shares they have, doesn’t matter how much more money they need - they do get paid in cash too, and they can borrow against the stock.

            So they sold out. Fuck them both for that.

            • Cethin
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              64 months ago

              The point would be to diversify assets. You don’t want to gamble everything on the hope the thing you believe in is successful. Not that I think they believe in the platform, but it is probably a smart idea to diversify no matter what. 25% of your shares does seem like a lot though.

              • @frezik@midwest.social
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                24 months ago

                If they sold at $50 a share, they pocketed over $25M each. Even after taxes, that is more than enough to live comfortably in any region’s cost of living.

                That’s not diversifying. That is greed.

                • Cethin
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                  14 months ago

                  Them not selling isn’t any more greedy. No matter what, they own the value of the stocks, whether they liquidate them or not. It’s fucked up that anyone gets paid that amount in general, but they did and it’s theirs. I don’t know what you people would want from them. Isn’t holding onto the shares hoping the value goes up even more greedy?

                • @rezifon@lemmy.world
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                  34 months ago

                  Or you sell stock when you need to rebalance. Fuck spez, but selling 25% at IPO seems sane and reasonable to me.

            • @octopus_ink@lemmy.ml
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              64 months ago

              if they believed in the company, they would hold their stock.

              The COO holds 1.4 million now, so she dumped 25% of her shares

              • @msage@programming.dev
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                104 months ago

                Selling quarter of your stock AT THE FUCKING IPO is a shame. I can’t believe people are defending that.

                And I suspect they can’t sell the rest as easily as the A shares.

                • @octopus_ink@lemmy.ml
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                  4 months ago

                  I have nothing I’m willing to defend about Reddit management, I love the idea that they will end up penniless one day (though I’m sure that will not happen.)

                  I just don’t think selling off 25% of one’s shares (necessarily) means what has been suggested.

    • @bitwaba@lemmy.world
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      -124 months ago

      I don’t know how much of a bag holding exercise it is instead of a “treat yoself” moment. Half a million shares at $50/share is $25 mil, minus 50% taxes is $12.5 mil.

      That isn’t that much money in the bay area. Don’t get me wrong. It’s a lot. But that’s just a $4 million house with another $1 million in furnishings, and I’m guessing a nice car or two. Take the other $6 mil and invest in a diverse portfolio. They’ve basically sold their stock so they can square away their personal lives.

      • @Guntrigger@feddit.ch
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        214 months ago

        Won’t somebody think of the poor shareholders.

        When I treat myself, it’s to a takeaway meal that’s like $20. Reddit has “never made a profit”™. Siphoning $16mil out of it on day one is obscene.

          • @Guntrigger@feddit.ch
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            14 months ago

            Awarded themselves shitloads of stock, then sold a quarter of their shares each as soon as humanly possible. That money is not being invested in the company, it’s going straight in these individual’s pockets.

        • @bitwaba@lemmy.world
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          04 months ago

          I wasn’t trying to make a “won’t someone think about the shareholders” argument. Thanks for the strawman.

          Really the gist of what I was after is “you’d do the same in their position”. $12.5 mil is a lot, but we’re not talking about $12.5mil/year. Its a one time sale. Someone that earns $100,000/yr just saw 125 years of income materialize in a couple seconds. But if you had the same opportunity, you’d probably do the same. If you would instead donate it to charity, please let us know which charities you’d donate to.

          • @Guntrigger@feddit.ch
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            14 months ago

            Fair enough, you didn’t say you condone it. But your comment does read with much more support than I would offer. And asking me which charities I’d donate to… ha! I don’t see why that’s relevant. Maybe I would do the same, but I don’t already have an $800,000/yr base salary.

            More relevant: this windfall would be 250yrs income for me. And on that income I already do donate to charity (albeit probably about 2% of my earnings). If this chump followed my percentage they would be donating 6 whole years worth of my salary on this windfall (plus 1/3 of my salary per year).

            The point is “treating yoself” to $12mil after tax is absolutely obscene whatever way you look at it. Not to mention still sitting on 3x more than that.

        • Cethin
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          -14 months ago

          That’s not how stocks work. Share value doesn’t go to the company unless the company sells shares of itself that it owns. It also doesn’t lose money from share value unless it buys shares. The value of shares goes to the shareholder when sold, and it comes out of the wallet of the buyer.

          It’s a show of a lack of faith maybe, but it doesn’t effect the company at all except for the effect on stock value from selling if the company also decides to liquidate shares too.

          • @Guntrigger@feddit.ch
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            24 months ago

            Share prices don’t only fall if the company liquidated stock. They will also fall from something like a mass sell-off because lower and lower prices will be commanded to sell large volumes of stock.

            You know, like the one in the article that talks about the 25% drop in share value.

            • Cethin
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              24 months ago

              Yeah, I mentioned selling dropping the price, but the price doesn’t effect the company except for the stocks the company itself sells. Having an extremely high or low stock value doesn’t matter if the company isn’t selling stocks. It’s only an indication that the company is doing well or poorly.

    • @mojofrododojo@lemmy.world
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      114 months ago

      did he really though? because I’d read a big chunk of that massive 100+ million dollar compensation was shares vested after IPO based on performance.

      hopefully it ruins them all.

      • @Croquette@sh.itjust.works
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        314 months ago

        He sold 500 000 shares for a big fat paycheck. It’s not 100 millions of fictional dollars, but he still made out like a bandit.

          • @nbdjd@lemmy.world
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            94 months ago

            Me. I can live on that. I would have to change my habits like eating more but that’s something I am willing to change.

            • @pikmeir@lemmy.world
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              14 months ago

              Lobster and sushi only on days that end with a Y. It’ll be tough cutting back but he’ll manage.

                • @JasonDJ@lemmy.zip
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                  4 months ago

                  Sure. I’m just pointing out that a million bucks isn’t that much in the grand scheme. A life-changing amount to just get one day, sure. But it’s still basically “own a house” rich. Woopty-do. Every boomer within 10 miles of a major metro with a paid of mortgage is nearly a millionaire just in their primary residence.