Roblox CEO On Track For A Staggering $233M Payday Even As RBLX Stock Tumbles
How would you feel if your income was directly tied to your company’s performance on the stock market? Roblox founder and CEO David Baszucki is set to receive a compensation package of $232.8 million USD as long as Roblox stocks do well. Unfortunately for Baszucki, Roblox’s stock performance has been anything but stellar.
According to the Roblox Annual Meeting of Stockholders, Baszucki’s compensation package is “100% of compensation is based on the 2021 Founder and CEO Long-Term Performance Award and requires substantial share price growth over a five-year performance period for vesting.” Baszucki will not receive any additional compensation between now and 2027. His salary was adjusted to $0 as of March 10, 2021. The caveat is that the award is based on the “stock price performance over multiple, staggered performance periods.” Baszucki’s compensation package in 2020 amounted to $6.8 million, albeit under a different model.
The compensation package structure was favored by Roblox for several reasons. First, the hope is that the package will help retain executives and discourage them from moving to another corporation. Second, it “enhances” the link between executives and stockholders as the package is dependent upon Roblox’s performance on the stock market. Last, it requires “significant and sustained Company performance, and discourages short-term risk taking to achieve short-term performance.”
Roblox stock has not performed particularly well over the last year (though Roblox currency is now worth more than the Russian ruble). As of Thursday, April 7th, 2022, Roblox shares currently sit at $45.17 USD. This must be a disappointment to Roblox as the price is roughly 30% less than what it was in March 2021 when it first opened to trading. Roblox may feel especially let down as it saw $130 per share in late 2021. Interestingly, many brokerages are encouraging individuals to hang onto or purchase more Roblox shares. Investors are reportedly encouraged by Roblox’s recent acquisitions, robust player base, and investment in the “metaverse.”
We imagine that regardless of stock performance that Baszucki will receive a decent payout. Baszucki was purportedly “receptive” to the reward as he believes “that he should be rewarded only if significant long-term outperformance is delivered.” He plans to donate the net proceeds to charitable causes.
Images courtesy of Roblox.
According to the Roblox Annual Meeting of Stockholders, Baszucki’s compensation package is “100% of compensation is based on the 2021 Founder and CEO Long-Term Performance Award and requires substantial share price growth over a five-year performance period for vesting.” Baszucki will not receive any additional compensation between now and 2027. His salary was adjusted to $0 as of March 10, 2021. The caveat is that the award is based on the “stock price performance over multiple, staggered performance periods.” Baszucki’s compensation package in 2020 amounted to $6.8 million, albeit under a different model.
Roblox stock has not performed particularly well over the last year (though Roblox currency is now worth more than the Russian ruble). As of Thursday, April 7th, 2022, Roblox shares currently sit at $45.17 USD. This must be a disappointment to Roblox as the price is roughly 30% less than what it was in March 2021 when it first opened to trading. Roblox may feel especially let down as it saw $130 per share in late 2021. Interestingly, many brokerages are encouraging individuals to hang onto or purchase more Roblox shares. Investors are reportedly encouraged by Roblox’s recent acquisitions, robust player base, and investment in the “metaverse.”
We imagine that regardless of stock performance that Baszucki will receive a decent payout. Baszucki was purportedly “receptive” to the reward as he believes “that he should be rewarded only if significant long-term outperformance is delivered.” He plans to donate the net proceeds to charitable causes.
Images courtesy of Roblox.
