Reddit CEO Steve Huffman defends his Rs 1600 Cr salary

Reddit is making headlines with its IPO attracting significant investor interest, reportedly oversubscribed between four and five times. However, amidst this buzz, the CEO is now facing criticism over his salary package.

According to insiders cited in a Reuters report, Reddit appears poised to achieve its targeted valuation of $6.5 billion.

While oversubscription doesn't guarantee a strong stock market debut, it indicates progress towards the anticipated price range of $31 to $34 per share.

Despite its loyal user base, Reddit has faced financial losses since its inception in 2005.

It has struggled to match the commercial success of competitors like Meta Platforms' Facebook and Twitter, recently rebranded as X.

Reddit CEO Steve Huffman's $193 million salary (Rs 1,600 crore) has sparked controversy, with social media users expressing diverse opinions.

Some argue it's excessive for a platform that doesn't compensate moderators or users, while others deem it unjustified given the company's lack of profitability.

In response, Steve Huffman defended his compensation, stating, “There's been a lot of commentary on this topic.”

He explained that his salary, comprising both salary and stock, is determined by Reddit board members based on his performance.

According to a 2023 SEC filing, Steve Huffman earned $341,346 (Rs 2.8 crore), relatively low for a CEO of a major public corporation. However, in February, his salary increased to $550,000 (Rs 4.5 crore), and he reportedly received a $792,000 (Rs 6.5 crore) bonus last year.