Snap employees were told they wouldn’t be getting cash bonuses for 2017 since they didn’t beat their internal goals, which were undefined.
2 Mar, 2018BUSINESSINSIDER.MY
Employees at Snap Inc, the parent company of Snapchat, have gotten their fair share of bad news since the company went public one year ago.
Still, the most recent news that they won’t be getting cash bonuses for 2017, as Bloomberg’s Sarah Frier reported on Thursday couldn’t have been easy to hear – especially since CEO Evan Spiegel got a payout of $637 million, thanks to an award described in the company’s annual report as a “motivational tool.”
Spiegel’s windfall came from a one-time stock award, which he’ll receive in increments as a reward for Snap’s successful IPO. The award was agreed on awhile ago and was first disclosed last February in the company’s S-1 filing.
Snap just had its first good quarter since its IPO, growing revenue 72% year-over-year to $286 million, above Wall Street’s expectations. But Snap’s 2017 was full of turmoil, including a plummeting stock price after its IPO, changes to the advertising business, an interface overhaul that received some harsh criticism from users, and the departure of a key executive.
Snap also has a famously secretive culture, as previously reported by Business Insider, which doesn’t always make for a happy workplace. And Spiegel’s polarizing management style has been an issue before and after the IPO.
Employees were told they didn’t get the bonuses because they didn’t beat internal goals, according to Bloomberg, but those unmet goals were apparently undefined due to a lack of communication from up top. Snap declined to comment on this story.
Spiegel’s compensation for 2017 was equivalent to 77% of Snap’s full-year revenue last year.
The contrast between Spiegel’s outsized pay and the lack of a bonus for staffers is unlikely to help morale, or Snap’s recruiting efforts.
Snap released an anonymous survey on Wednesday to gauge employee sentiment about the last year, Bloomberg said in its report. The results of the survey aren’t out yet, but given the recent news and the alleged communication issues, the responses are sure to make for an interesting read.
This article was first published by Prachi Bhardwaj on Business Insider US