Home Refractory Redfin approves millions in executive pay on the same day as mass layoffs

Redfin approves millions in executive pay on the same day as mass layoffs

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redfin 470 layoffs announced Tuesday – and lucrative compensation packages approved for top executives.

At the company’s annual meeting, Redfin shareholders approved by a wide margin the 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 payment reflects performance in 2021, with the specific packages proposed by Redfin’s board of directors more than a year earlier. In addition to his position as CEO, Kelman also serves 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’s compensation in 2021 to the average compensation of our employees in 2021 was significantly lower than the public companies we compete with,” the spokeswoman said.

However, Nielsen, CFO of Redfin since 2013, received $2.3 million in annual compensation. Weiner raked in $2.7 million.

Nielsen’s seven-figure payment comes from a $501,000 base salary, more than $1.6 million in stock awards and a $160,000 bonus. The bonus was awarded based on “achievement of financial goals” and “achievement of diversity goals”. according to to a Securities and Exchange Commission Submission.

Wiener’s payday was largely derived from around $2.2 million in stock options.

Frey nabbed a total of $2.2 million. 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. As Redfin’s Chief Human Resources Officer, she earned $3.2 million in compensation.

The payouts were approved at an annual shareholders meeting that lasted eight minutes. Shareholders had received copies of the agenda in advance and voted overwhelmingly – without debate or discussion – in favor of the compensation packages.

In comments requested for this article, the Redfin spokeswoman also noted, “Compensation is set by our Board of Directors, benchmarked against peer companies and aligned to attract and retain the most qualified employees and hold them accountable by increasing pay to the results will be bound.”

She added, “Because a significant portion of executive stock compensation is based on the achievement of performance targets, 2021 compensation was not final until we had full-year 2021 results.”

The green compensation came after Kelman announced Layoffs in a blog post on Tuesday.

“We’re losing a lot of good people today, but for the rest to stay, we need to add value to Redfin,” Kelman said. “And to increase our value, we need to make money. We owe it to all who have put their time or treasure into this company to become profitable, and very profitable at the same time.”

Redfin announced no mass layoffs for 2021 The company lost $118 million during a historically great year for real estate professionals, with overall sales and price increases reaching levels not seen in at least 15 years.

Redfin did announce 121 layoffs in the second week of January 2022 concurrently with the acquisition of Bay Equity home loan.

Throughout 2021 and so far this year, Redfin stock has been in freefall. The stock price has risen to just over $7 as of Thursday’s close from a high of $97 last February. Redfin has a market value of $776 million.

The setbacks can be taken into account in future Management Board remuneration.

“In 2022, a significant portion of compensation will be tied to business performance and shared with investors in 2023,” the Redfin spokeswoman said.