The founder and CEO of Roblox, David Baszucki, may receive a compensation payment of about $233 million in connection with the company’s success.
According to the declaration filed on April 4, the payment of Bashuki will amount to $232.8 million for 2021, according to Reuters. This is 3323% more than last year’s payout. Then Bashuki earned $6.8 million.
Most of the amount is a Long-Term Performance Award. This is a payment method in which the amount of a manager’s salary directly depends on the results of the company’s activities.
It is assumed that this award allows you to keep top managers in their positions longer. Such an approach is practiced by such large companies as Tesla and Activision Blizzard. For example, the CEO of the latter, Bobby Kotick, earned $154 million in 2021.
As for Bashutsky, he will receive $232.8 million only if certain conditions are met. First, the Roblox stock price should rise to $165 by March 2023. Secondly, by March 2026, it should be $375.
At the time of publication of the material, the value of one security of the company is $48.4, which is 28% less than in March 2021, when the company entered the stock market.
Bashutsky’s base salary, excluding bonuses, is $0. In other words, until 2027, he can only count on bonuses.