So my 16 year account with 90k legit comment karma wasnt good enough to be invited?
Now I dont get to early participate in the fomo panic IPO being forced by investors?
I could’ve made or lost tens of dollars.
I’m at 10 year with about 500k combined. They sent me one. I laughed. Made me feel about as special as being given a pizza Friday at a job I’d been working for just as long. Actually, I would have been happier with the pizza.
Should have picked Harassment. Selecting Spam does nothing.
I’d pick prohibited transaction. I live in AU. NYSE won’t let me trade there.
Either that or “hate” - all redditors can get involved, but not you because you are not from the US. Sounds like communism.
You can trade on the New York Stock Exchange in Australia. I trade foreign stock exchanges all the time.
It’s a bit more complicated… you trade through a broker with trading rights on that exchange. Unless you are a power user on a bloomberg terminal.
Reddit could direct sell shares to a US resident, I’m pretty sure, as a first party sale.
That’s exactly how people in the US trade also!
Why would you want to do that. Unless you are trading massive amounts of money, it’s more practical to just use an online broker.
‘Sounds like communism’
Show me people who don’t know what communism, Alex
Most of that money is in stock, so he’s doing this to further inflate his stock value
While cutting off reddit apps that are better than the bloated shitshow that is the reddit app
tldr: this will let you save money while you lose money
That little “tldr” at the beginning of that text wall makes me feel gross
Seems to me the institutional investors aren’t interested at the price they’re asking.
Nah, if you click through to the sign up they ask you for a bunch of personal information on a form hosted on reddit.com and then say “there are a limited number of spots, we will accommodate as many people as we can.”
A month from now, 99% of people who fill out that form will be “wait listed” but reddit will have their real name and phone number forever. That’s the grift.
He wasn’t paid that amount. He got 341,000 in cash and the rest was in stocks and options (which will only be worth that much if the company performs well financially). This us place is just like Reddit, nobody ever reads the article.
Steve Jobs was wealthy despite having a salary of $1 per year.
But also Tim Cook’s total compensation for 2022 was $99 million and Satya Nadella’s 2023 was $48 million. Paying him more than CEOs of actually profitable companies and what amounts to nearly 1/4 of revenue is a pretty big outlier.
This place is also just like reddit in that comments like yours seeking to seem smarter than everyone else by pointing out technicalities in the article as evidence everyone has the wrong idea, without appreciating the full context, and deliberately ignoring the overall point.
Executives paid in stocks and options are completely normal, and those stock options have a value. Moreover, those things were not given to other employees nearly as much as they were given to the CEO.
The actual dollar amount he receives from Reddit is not what matters. What matters is the amount of compensation given to him in comparison to everyone else at Reddit and to other CEOs at other companies.
The point is Reddit is effectively giving way too much of its value to one person, who has done little to actually make it profitable in all the time he’s been there.
The context is important since it informs us about why he’s doing this, which is probably to further inflate his stock value
That is how they all get paid, so they can pay less in taxes.
It’s irrelevant.
Still not how that works, if he wants cash he has to sell, selling stocks is heavily taxed. Now he can take a loan against the stocks but if they don’t do well then he’s not going to get much for them. It’s a risk and taxes is paid like it or not.
Still a shit system, but that’s a different discussion, but they pay taxes.
The interest rate on taking loans against assets is usually less than paying the taxes for selling the same assets
They can take out loans with the stocks as collateral. The money received from loans isn’t taxable.
That still requires you to make sure the stock are worth something, and you have to pay interest on that loan.
I think people are thinking I’m defending the system, I’m not, I’m just pointing out how it works.
Long term capital gains are taxed at half the rate of income. So yes, share based compensation is a way to reduce taxes. There is also a line of thinking that having the leadership’s compensation tied to the stock’s performance helps align the interests of shareholders and management.
It’s taxed as income when you receive it. If you hold onto it for over a year then sell it you pay capital gains (which are lower) on the difference between the grant price and current price (if it went up).
“They pay taxes” - right, and the effective rate is lower this way. That’s why executive compensation went this route decades ago.
Which is why, as I said, they all get paid this way.
If they sell after holding it for more than a year, if they short term sell the stock under a year it’s a normal income tax on said stock.
If they sell all of it that year. Which they don’t, even if they sell any at all the same year as issued. They stagger sales, and generally are doing it a year after, if they aren’t just taking a loan against the stock and using that.
It’s part of the compensation regardless of if you want to pretend otherwise. It’s income, it belongs in the total.
I wouldn’t say heavily taxed. If he exercised his options more than 6 months ago he’ll pay the flat 15% capital gains tax. Whereas his effective tax rate on his salary will be around 30%
If he waits for longer than a year, short term under a year is taxed at normal income rates.
Yeah and he can also use the stocks as collateral on a loan and avoid them all together.
I have read that that’s one of the wealthy’s “big secret” ways to avoid taxes. They allegedly live off of those loans as their spending money, while the value of the investments they use as collateral increases over time, but they don’t pay taxes on the Unrealized gains. And they can keep borrowing more as needed with those same investments as collateral.
I don’t have the whole scam figured out though. I’m not sure how they pay back the loans without having to cash out something that would generate a tax burden.
Another thing to avoid taxes is donating stock to charities, as you can deduct the market value of the stock rather than just the cost basis.
Say you buy some stock for $100 and it goes up in value to $400. If you sell it, you have to pay capital gains tax on the $300 gain.
However, if you donate it, you don’t have to pay any tax and can deduct the whole $400, meaning your taxable income is reduced by $400 (which would be a ~$120 reduction in income tax for someone with a 30% effective tax rate).
Of course, you still end up with less money than you would have if you didn’t donate. But if you’re going to donate anyways, donating stock with gains is better than donating cash because you’ve already paid income tax on the cash but haven’t paid any tax on the stock gains.
lol just default the loan and let them take the collateral, you have thr money already tax free
I’m assuming s long s they spread out payments over time and roll lots of the debt into the next loan.
That’s how they become too big to fail at their banks. At least that’s the Donald Trump method. His problem is that he has fuck all for collateral at this point.
I wonder if you can pay off loans by transferring the stock. Idk, just a thought
It doesn’t really need to perform well financially. He can sell everything as soon as it goes public and retire
But they never do that. Musk could have been supping margaritas on a man made island with oompa loompas in a private ocean a long time ago
Oompa-loompas are extinct. He needs enough money to clone them from mosquitos trapped in amber.
Butterscotch.
So why does your CEO get paid quarter of a billion a year if they had to hike their APIs unreasonably and kill all 3rd party apps because “reddit wasn’t profitable” despite not paying a dime to the mods running their website niether to contribitors, posters nor users ?!?! Reddit is scummier than Uber
And they don’t even let you report it as the spam it is.
I got banned for doing this. “Report abuse”, they called it.
No one regrets getting banned from nazi digg.
So instead of Report abuse, they see it as Report abuse.
They lost 93 million on 2023, and paid the CEO more than double that.
Nope - can’t think of a single thing they could do to make reddit profitable.
Well kinda but not really, he owns around 4% of Reddit which is where the $193m comes from because of the $5b valuation.
Still, fuck spez
They paid him just shy of 400k. The stock and options he was given have nothing to do with reported losses. It’s all monopoly money until IPO, them we’ll see what it’s worth.
Paying yourself 190 million in stock options when the company is running at a loss is pretty much blatantly admitting that the company is severely overvalued. My guess is that it will tank 90% once it goes public. If not more, Reddit produces nothing inherent of value and they are really hostile to their users.
I was in the first round of invites.
I might buy some depending on initial price. May as well milk them a bit like they’re doing to their users.
Only use money you are willing to lose
Isn’t that true of all gambling?
Yeah for sure, but I say it here to imply that it would be a loss. Maybe I’m just on the hate train but I’ve not seen a true way that Reddit’s fundamentals as a company can be anything but very short term performance. I think they have a very limited time to milk their existing content, and the enshittification is not helping bring much more in.
It’s an unrelated industry, but I encourage you to look at Rivian’s IPO. Bought a couple shares for fun and small spike for a day or so then tank all the way to the ground. Mr. Spez is gonna pump and dump and run away with your cash IMO.
Why did Rivians tank?
I like what they’re doing with their vehicles, and I hadn’t heard anything particularly damning about them
You never know when they’ll dump. Hoping you can dump before others do in a pump and dump is not usually a good bet.
You don’t wait until peak. You wait until there is a small gain and bounce.
Buy at purchase price then sell 25 hours later.
Smart move could be to short it.
But then, I thought that Facebook’s IPO would flop, too.
Apple is a fancy-looking fad. I give it 6 months tops.
Goo-gol? Stupid name. Ill just ask Jeeves.
From memory all those were performing well, getting load of attention and be used by “everyone” at the time of their ipo. Particularly google was THE search engine and Facebook was THE social media site.
Reddit has been around forever, most of us left, what does it really have to offer? Keeping in mind that llms have had access to all that data for s long time, I can’t imagine the last 8 months or so of reddit data to be that significant.
Usually companies go public because they have an aggressive plan that requires growth and a massive cash injection. What is spez’s plan if he gets that? I’ll admit I haven’t really followed much, but I doubt reddit had this huge potential. And that’s even if they didn’t alienate their users and nods.
Reminds me those pet food companies going public in the late 90s during the internet bubble.
The moment insider lock up ends.
But you won’t have the fastest possible internet ping, others are gonna dump before you.
Should have marked self harm/suicide
What’s next? Reddit Coin? NFTs?
Doesn’t reddit already have NFTs?
They also do have a reddit vault for crypto
That’s already there since a couple of years.
Maybe Shoes…
How do I buy puts on this?
CBOE will create options for it pretty soon after IPO, probably that week or the next. You’ll definitely be able to buy puts on it before you’ll be allowed to short sell it.
