Judging by your recent comments, you seem to have an axe to grind with people who are "upset about CEO pay" and I don't think it's possible to convince you to look any things from any other angle.
A CEO abruptly resigning is read by the market as a signal. Unless you think this person is ~$6.5B more valuable than any potential replacement, the full quantity of the loss cannot be ascribed to the value he provides as an employee.
this same things can happen with any employee at any company and does not bolster your argument.
a $10/hr worker flipping burgers can take actions that cost hundreds of thousands of dollars. burger king foot lettuce guy probably cost the company millions.
i could cause millions of dollars in damage this afternoon (i am not paid millions).
If a Burger Flipper leaves the company, it costs them exactly the amount of Burgers they fell short of making (to meet the demand) till they find the replacement burger flipper and they are exactly paid that much.
Anyone can burn/bomb a company and cause millions in damages. Doesn't mean they are worth that much
yes, that's my point.
and it absolutely extends to unexpectedly leaving. there have been plenty of times in my career that simply leaving without notice would have cost my company many times my salary.
mongodb ceo is not worth 6 billion dollars.
or, in other words, looking at the 6B loss and working backwards to say that the CEO was underpaid at 52MM is nonsensical
It sounds like you just have something icky against someone being worth billions to a business. It's not a moral worth, it's just a market value as perceived by the market. In other words, a rational investor would gladly pay the CEO $1b for him not to leave and save $6b in market cap. So by definition he must be worth at least that much.
there's many explanations as to why the stock dropped the amount it did. one of the least likely was that desai's leadership is worth billions of dollars. it has nothing to do with "icky".
a rational investor would not want desai to receive a ~20x raise to stay, either. i have no idea why you think they would.
MongoDB reaffirmed both Q3 and full-year FY2027 guidance this morning.
There was no revenue warning, earnings revision, or deterioration disclosed alongside Desai’s departure.
There was no major analyst downgrade today driving the move. In fact, Citizens maintained its Buy rating and $519 target.
There's literally no other reason I can reasonably think of for the large stock drop apart from his departure. So I think you're stretching here. You just can't admit what's obvious because you likely think it's morally icky to suggest someone can be worth that much.
Also you have to consider that Zuck is probably paying him 9 figures to leave. So another person validating that he really is worth that much
you keep saying this, but you have literally no idea who i am or what my morals are. perhaps you should not speak so confidently about things you know nothing about.
i dont find anything "icky", i just disagree with you.
>Also you have to consider that Zuck is probably paying him 9 figures to leave. So another person validating that he really is worth that much
you can't make up a random number then use that made up number as "validation" for your point.
if "CEO Resignes" SELL SELL SELL
1: Obviously exceptions will exist for unexpected major life events, etc.
But possible it could have been over-valued before, unbeknownst to low-information external investors. After all, right now it as a PE of 450+. (Google PE is 17, Meta PE is 27, Tesla PE is 330)
The stock dropping on CEO departure had nothing to do with his personal performance, and everything to do with the information that he revealed on the way out. Why would the CEO leave a rising and successful company on the verge of innovation?
And thus tying it back to pay - people should be paid based on their output and their personal performance, not based on simply serving as a signal which any warm body can do. That said, I don't think truly amazing CEOs are overpaid, e.g. steve jobs of old.
So… I guess you could make an argument that that merits higher pay, but it'd be saying it's due to his blackmail power.
Make adjustments based on ML
Actual analysis of this person's value to company not weighted as highly
In short: is it this particular CEO who is that valuable? Should I pay 100m to some Joe off the street since I know they will stay put?
CEOs leave all the time. Average tenure has dropped over the years suggesting a fierce competition for senior talent
I would argue that at most he's a signal about company value that people reacted to. Maybe the company lost 6 billion dollars in underlying value, but it wasn't from the CEO change itself.
One would be "the market processing the new information that MongoDB's legal department doesn't know how to draft contracts".
Sure: Destructive actions have a lower bar than constructive ones.
My company doesn't pay me millions, but I were motivated to do so, I could probably cost my company millions. Similar principle here: regardless of whether the CEO is any good, simply by virtue of their position they can tank the stock by making wild moves that undermine confidence.
Imagine a generic human blob CEO with minimal VORP[0], you could swap him out with anyone else in the organisation and get the same results. But if he gets on twitter and announces, "This company is trash and I'm leaving this trash fire," he's going to cost them millions.
[0] https://en.wikipedia.org/wiki/Value_over_replacement_player