Just over a year after its successful public listing, Roblox Corp has announced that its founder and CEO David Baszucki’s base salary will be dropped to $0, with the executive instead poised to receive a “Long-Term Performance Award” worth up to $233 million, Reuters reports.
The CEO’s total compensation for the previous year was just $6.8 million, making the $233 million compensation package a pretty major step up. It isn’t directly comparable, however, with the new pay packet designed to take Baszucki through to 2027, and also being directly tied to the company’s performance on the stock market.
“Mr. Baszucki was particularly receptive to receiving the Founder and CEO Long-Term Performance Award as he believes that he should be rewarded only if significant long-term outperformance is delivered,” reads a regulatory filing announcing the new pay packet for the CEO. The document also adds that Baszucki intends to “donate the net proceeds [of the award] for philanthropic purposes.”
This method of compensating executives has been used by a number of big companies, including Tesla, but has been criticized for allowing payouts worth billions to CEOs.
While Roblox has had a strong year, having passed a number of big milestones for its platform, as well as increasing revenue, its share price recently took a dip, disappointing investors.
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