On: Meta lays off 11,000 people

[falcolas]

Taking a salary cut. Loosing unvested options. Fewer grants going forward.

Financial penalties that incentivize him to not fuck up again.

[francisofascii → falcolas]

To be fair, his net worth fell by $70+ billion. So that sounds like a financial penalty to me.

[falcolas → francisofascii]

A reduction in net worth (i.e. stock price dropping) is a pretty terrible penalty, because a) it doesn't actually reflect upon the CEO's successes or failures, and b) because any bump in Meta's stock price will bring that net worth right back. And, usually, doing a mass layoff will do exactly that.

EDIT: Sure enough, Meta's stock is up ~17% since a week ago.

[eru → falcolas]

> And, usually, doing a mass layoff will do exactly that.

That tells you that companies have far too few mass layoffs.

[falcolas → eru]

Only if your goal is short-term profits, and not long term sustainability.

[eru → falcolas]

Stock prices are the market's estimate of the company's long running prospects.

Management has a fiduciary duty to shareholders. Stock price isn't everything, but it's still prima facie evidence of what shareholders want.

[roflyear → falcolas]

Homie this isn't a fuck up. It's what shareholders want and it is awful.

These 11k employees are not a threat to facebooks existence. Not even close. If that was the case FB stock would be tanking.

FB is pulling in record profits. They just are getting a little nervous and they are laying people off. It is ridiculous.

[falcolas → roflyear]

I don't necessarily disagree with you, and we will see FB's stock bumping back up again now that Zuck's make the "hard decision" to lay off employees.

[roflyear → falcolas]

Yeah. Up 7%! when the SPY is down 1%. Wild.

[disgruntledphd2 → roflyear]

To be fair, up till this point, Metas PE ratio was half that of Google.

[jfdbcv → falcolas]

Zuckerberg takes a $1 salary and no equity compensation.

[lovich → jfdbcv]

Neat how all his property was just donated to him by adoring fans then. Obviously there’s no way he’s discovered to wield his vast wealth

[akavi → lovich]

…he starts the company. Afaik, he’s never taken any additional compensation beyond his ownership share, that came about because… he started the company.

[lovich → akavi]

So the multiple houses? The land in Hawaii where he tried to just take from the current owners? All that was part of the company? Pretending like he just owns the company and hasn’t taken compensation anywhere cause he has a 1 dollar a year salary is a a child like understanding of how billionaires leverage their wealth

[falcolas → jfdbcv]

I'm certain there are people smarter than I who could come up with an appropriate penalty. Quite a few on Meta's board, no doubt.

Put him on a PIP with a mentor? :D