Twit­ter doles out stock, cash bonuses to re­tain tal­ent

The Pak Banker - - COMPANIES/BOSS -

SAN FRAN­CISCO: Twit­ter Inc has been sweet­en­ing em­ployee com­pen­sa­tion pack­ages to re­tain tal­ent as the com­pany's user growth stalls and it stock price slides, the Wall Street Jour­nal re­ported.

Four top ex­ec­u­tives left the com­pany in Jan­uary, the big­gest lead­er­ship ex­o­dus since co-founder Jack Dorsey re­turned as chief ex­ec­u­tive last year.

The de­par­tures added to con­cerns about the com­pany's abil­ity to make its prod­uct more en­gag­ing and gen­er­ate more money from ad­ver­tis­ing.

Twit­ter has been of­fer­ing cash bonuses to some em­ploy­ees, rang­ing from $50,000 to $200,000 as an in­cen­tive to keep them around for an­other six months to a year, the Jour­nal re­ported on Wed­nes­day.

The com­pany has also granted vary­ing amounts of re­stricted stock de­pend­ing on when the em­ploy­ees started work­ing, in­tend­ing to make up for the value lost since they joined the com­pany, the news­pa­per re­ported, cit­ing peo­ple fa­mil­iar with the mat­ter.

Twit­ter's shares have lost more than 60 per­cent of their value over the past 12 months.

"Com­pet­i­tive com­pen­sa­tion, strong lead­er­ship and a con­fi­dence in the di­rec­tion of the com­pany are all key el­e­ments to hav­ing top tal­ent," a Twit­ter spokes­woman said in an email.

"We are in­vest­ing in all three ar­eas to en­sure we main­tain th­ese em­ploy­ees," she said, with­out pro­vid­ing fur­ther de­tails.

Dorsey said in Oc­to­ber he would give a third of his stock in the com­pany, a stake of about 1 per­cent, to the em­ployee equity pool.

Later that month, he spoke about "hir­ing and in­vest­ing in tal­ent" and the need for "bold re­think­ing."

Twit­ter showed no growth in users in the fourth quar­ter. That was the first time that had hap­pened since the com­pany went pub­lic in 2013. Twit­ter's shares were un­changed at $17.66 in light pre­mar­ket trad­ing.

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