Reddit CEO Earned Rs 1600 Cr And He Believes It Was Because Of His Performance

This news sparked outrage on various online platforms, with users questioning the hefty sum allocated to the head of a platform that relies on unpaid moderators and hasn’t turned a profit yet.

Amidst mounting criticism, Huffman has stepped forward to justify his compensation, emphasising its link to his performance metrics and the future success of Reddit as it prepares to go public.

The leak of Huffman’s pay package has prompted widespread backlash, with users expressing concerns over the seemingly exorbitant amount allocated to the CEO of a platform that relies heavily on unpaid mods and users for content moderation and community management. Questions regarding the justification behind such a paycheck have echoed across platforms like Quora, Reddit, and X (formerly Twitter).

In response to the growing scrutiny, Huffman addressed the issue directly in a video Q&A session on Reddit, the platform he helped co-found. He defended his compensation, stating that it is determined by the Reddit board based on his performance metrics and contributions to the company’s growth and success.

Contrary to initial impressions, Huffman’s salary is relatively modest for a CEO of a major public corporation, standing at $341,346 in 2023, with a slight increase to $550,000 in February. However, most of his compensation comes in the form of restricted stock units and stock options, contingent on his tenure at Reddit until late 2028 and the successful completion of the IPO.

Huffman’s compensation package is tied to Reddit’s performance, with goals aimed at ensuring the company’s success. Notably, past rewards tied to performance metrics that did not materialise as expected were subsequently cancelled, indicating a direct correlation between Huffman’s compensation and Reddit’s performance.

As Reddit gears up to transition into a public company, Huffman stands to potentially earn around $200 million, even before factoring in his new compensation deal. A comparison with other prominent tech CEOs such as Mark Zuckerberg and Elon Musk highlights the diversity in compensation structures across the industry.

While Zuckerberg reportedly receives minimal salary but benefits significantly from the company, Musk’s compensation at Tesla has been a subject of debate. Huffman’s estimated $193 million pay package reflects the complex interplay between executive compensation, company performance, and shareholder interests.

It’s important to note that the $193 million figure represents an estimate based on existing rules and may not accurately reflect Huffman’s final earnings. However, it underscores the significant financial stakes involved for Huffman as Reddit prepares for its highly anticipated IPO.