Redfin approves millions of payouts to executives on same day of mass layoffs
red fin announced 470 redundancies Tuesday – and lucrative compensation packages approved for senior executives.
At the company’s annual shareholders’ meeting, Redfin shareholders approved by a wide margin compensation packages for Glenn Kelman, the company’s CEO; Chris Nielsen, Chief Financial Officer; Adam Weiner, President of Real Estate Operations; and Bridget Frey, Chief Technology Officer at Redfin.
The payout reflects 2021 performance, with the specific packages offered by Redfin’s board more than a year earlier. In addition to his position as CEO, Kelman also sits on Redfin’s board of directors.
Kelman receives $300,000 in annual cash compensation, which a Redfin spokeswoman pointed out is a relatively modest sum for a CEO.
“At 4-1, the ratio of our CEO compensation in 2021 to the median compensation of our employees in 2021 was significantly lower than the public companies with which we compete,” the spokeswoman said.
However, Nielsen, Redfin’s chief financial officer since 2013, received $2.3 million in annual compensation. Weiner pocketed $2.7 million.
Nielsen’s seven-figure payout comes from a base salary of $501,000, more than $1.6 million in stock and a bonus of $160,000. The bonus was awarded based on “achieving financial targets” and “achieving diversity targets”. according has a Security and Exchange Commission deposit.
Wiener’s salary largely came from some $2.2 million in stock options.
Frey nabbed $2.2 million in total. And, like Nielsen, $160.00 comes from meeting diversity and financial goals.
The board also approved payment for Ee Lyn Khoo, who left the company in January. She earned $3.2 million in compensation as Redfin’s chief human resources officer.
The payments were approved at an annual meeting of shareholders, which lasted eight minutes. Shareholders received advance copies of the agenda and voted overwhelmingly – without debate or discussion – in favor of the compensation package.
In the comments solicited for this article, the Redfin spokesperson also noted: “Compensation is set by our Board of Directors, compared to comparable companies and designed to attract and retain the most qualified people and hold them accountable. by linking remuneration to results.
She added: “Because a significant portion of executive equity compensation is based on the achievement of performance goals, the 2021 compensation was not final until we had the results of the year 2021.”
The approved compensation came after Kelman’s announcement layoffs in a blog post tuesday.
“We’re losing a lot of good people today, but for others to want to stay, we need to increase the value of Redfin,” Kelman said. “And to increase our value, we have to make money. We owe it to everyone who invested your time or treasure in this business to become profitable, and then very profitable.
Redfin did not announce any mass layoffs in 2021. However, the the company lost $118 million in a banner year for housing professionals, with total sales and price appreciation reaching levels not seen in at least 15 years.
Redfin did announce 121 layoffs in the second week of January 2022, concurrent with its acquisition of Bay Equity Home Loans.
Throughout 2021 and so far this year, Redfin shares have been in freefall. The stock price fell from a high of $97 last February to just over $7 at the close of business on Thursday. Redfin has a market value of $776 million.
Setbacks can be calculated in future executive compensation.
“In 2022, a significant portion of compensation will be tied to business performance and will be shared with investors in 2023,” the Redfin spokeswoman said.