Considering Netflix stocks going downhill with its stocks and it doesn’t pay in RSUs how does it manage employee compensation based on growth? In this case does it reduce cash ? Edit ✍️
Netflix’s pay is usually straight cash
I think OP is asking from a business perspective. How is Netflix able to pay straight cash when it loses billions in a few days.
Because OP is an idiot. The company doesn’t make money from its market cap (well OK, kind of if they issue new stock…but that’s beside the point)
You choose your payout in Netflix . Not all cash . You choose how much cash and RSU you want as part of package .
Oh is it, didn’t know that
No it’s not RSU, it’s options. Which is fundamentally different.
Stock price shouldn't matter for all cash comp unless netflix doesn't have actual cash and need to go to market to get cash (offerring).
P/E of 35
This 👆🏻
This is a solid PE. The market average is like 26 right now and Netflix grows much faster than average even with its miss. This feels like an overcorrect
That's the nature of stock vs cash compensation. You choose the rollercoaster. Once you agree to RSUs you agree to share both the upside and the downside. Right now Netflixers are looking pretty good with the all cash option. Most big tech employees don't have that option.
So is it 3-5% hike every year ?
10%-15%. And their median at 550k or so.
So do they have cliff with all cash? Refresher?
No. But they will cut you in a second if you underperform and if you want a raise you have to go out and interview to get proof. They pay well and know it.
That rumor persists, but Netflix really isn't a cut throat company. Everyone I know works 8 hour days, takes plenty of vacation time, long parental leave, and works flexible hours. Sure, people get fired. Mostly it's those who have been here for less than a year and their work quality just wasn't a reflection of their interview quality. Or longer tenured employees who have given up and want to get let go for the 4 months of severance (though at least 2 people I personally know wanted to get fired and couldn't). Sometimes what the company needs from a role changes, and that sucks. You also don't need to interview for raises. You certainly can if you think your specific skills have a value mismatch at Netflix, but I average ~15% raise per year (over a good number of years) every compensation review cycle. If I know someone that has a similar role that got more money elsewhere, I can simply provide that data point and they'll generally match it.
While the stock is down, the company's profit and cash flow will be all time high this year. And the cash based compensation means we don't have trouble retaining employees
Exactly, it’s amazing how many people can’t read a basic earnings report. The main reason the stock tanked is a slower than expected subscription growth. But from a cash flow perspective Netflix is doing just fine.
disagree — from a cash flow perspective NFLX is not GROWING ENOUGH vs its valuation. It is borderline free cash flow positive breakeven and with subs not growing there is less belief FCF will grow
That’s the point of picking the all cash option
What does Netflix engineering even do at this point? If you told me Netflix devops I would believe you, Netflix content, I would too HBO APP SUCKS But it’s not enough pain for me to not subscribe
HBO App could be a list of links to movies and people would still pay for it.
Agreed. Hbo max app is the worst thing ever but I’d still rather watch HBO shows than Netflix
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I thought Netflix paid all cash.
Yes exactly the point so employees would expect less cash this year ?
Its salary so no