Peloton ceo Barry got a fat paycheck(TC:$168,073,420 ). All ceo cares to pocket money and talk about being cash flow positive in future. He might had decided to take a pay cut and keep company floating. Peloton is not netflix and content based strategy doesnt work. Barry did his best effort for turn around and implemented what he learned from previous expriences. Capitalism philosphy doent allow ceo to take a pay cut and save company layoffs. Although there are few exceptions. Should C-suite take paycut to save company or chase TC? TC:450k #peloton Blind community pls help peloton layoff folks if possible.
“Capitalism philosphy doent allow ceo to take a pay cut and save company layoffs. Although there are few exceptions.” This isn’t necessarily true. Capitalism prioritizes profits of the COMPANY over the employees, and technically the CEO is an employee. The Board of Directors could easily decide to reduce the pay of the CEO in order to prevent layoffs. The issue is the board usually views the CEO as being more important.
There are many types of capitalist systems the US is the extreme example. Many other countries have strong Gov interventions and regulations. CEOs are accountable for the performance of the company and if the company is going that poorly it needs to lay off staff the first to go should be the board and the CEO. Too often we see CEOs and boards get away with poor leadership and nothing happens while the skilled workers who actually make the company pay with there jobs. If lay-offs are needed people should be treated with respect and payout correctly. In Europen counties and Auatralia these a legislative requirements
So pay employees with stocks instead of cash? I assume the ceo tc is mostly stock based.
TC chaser C-suite is waiting to complete vesting cycle and cash in money. They are cashing money via stock and save tax component on hard cash part of TC. Look at peleton Cfo earned by selling stock while they are aware of company dumster fire. https://www.nasdaq.com/market-activity/insiders/coddington-elizabeth-f-1220324
It's an exercise bike with an iPad
no. i don’t even understand why you think they should. if layoff saves the company money c suite has done their job and done it well. fat bonus.
Nitendo ceo Iwata took a 50% pay cut to help pay for employee salaries, saying a fully-staffed Nintendo would have a better chance of rebounding. This is 6th layoff in peloton. Why c-suite is not focusing on business growth intead of waiting to shares fully vest?
Only Japanese do this
CEOs who have taken pay cuts include: Sundar Pichai, CEO of Google Forrest Li, CEO of Sea Ltd Penny Pennington, CEO of Edward Jones Borje Ekholm, CEO of Ericsson AM Naik and SN Subrahmanyan, Chairman and CEO of Larsen & Toubro Tim Cook, CEO of Apple Jamie Dimon, CEO of JPMorgan
ceo should take the money and be barred from any other employment in a publicly held company. if he wants to keep the job, paycut and avoid layoff. hate the entitlement of these assholes.
Great point. Unfortunately capitalism is designed for super rich. Look at fisker ceo. He keep getting business loans and drive companies to bankruptcy.
On the other hand, if middle class goes $1 more than current available balance in bank then they have $35 overdraft fee. Bailout is for c-suite only.
Why is peloton paying their CEO 160 million ?
Ex-netflix comes with a price tag.
He was making 7 mil at Netflix.. But it's how is pay package works. Share price is 8, his options best at a strike if 38.. so needs share price to be above that otherwise he's making 1.25 / year. So yes, if he can 5x the company value he should make bank Edit: now sticks at 3.. so 13x
Should you take a payout from your $450k TC? It seems unfair and immoral from the perspective of the 3rd world.
Its depends whether you believe in your company or just joined it for TC sake. I can take a paycut but that will make company run for few hr or mins. Few company drops variable pay component for all employees during tough times if they think core business values of the company is strong and there will be upside in future. C-suite dynamics are very different and they are not just cog in the machine. They can make ship sail or sink in rough weather. But current breed of TC chaser c-suite lost all credibility.
Investors have only themselves to blame if they didn't care about tying compensation to stock performance. You may be making am argument based on fairness, which as I pointed out, is hypocritical.
Ex-netflixer ceo have inflated ego. He have option to sell company and save it from sinking but rejected all offers and keep doing layoffs untill his 2 yr share vesting period is done. Best of luck to next company that he will join.
Do both