Roblox founder's pay jumps to US$233m on long-term stock awards

[BENGALURU] Gaming platform Roblox's founder and chief executive officer David Baszucki's compensation package for 2021 totalled US$232.8 million, compared with just US$6.8 million a year earlier, according to a regulatory filing on Monday (Apr 4).

The bulk of the pay package comprises a long-term performance award for Baszucki, which was valued at US$232.2 million.

Baszucki, who will not get any other direct compensation through 2027, will receive the award in parts over the years only if Roblox shares achieve certain milestones, the filing added.

The so-called "Long-Term Performance Award" is a pay method followed by some companies, including Tesla, as a way to retain top executives by tying their earnings to company performance. The plan has faced criticism, as it has led to payouts worth billions to founders.

Roblox, which made its market debut in March last year, posted an 83 per cent rise in revenue, but a wider-than-expected 25 US cents per share loss in the fourth quarter in February.

Roblox shares closed trading at around US$50 on Monday, about 28 per cent lower than the closing price on Mar 10, 2021, their first day of trading. REUTERS