Management Compensation Raises Concerns at Yelp

11 days ago

Ryan

"So Jeremy Stppleman is still the CEO, the co-founder from 20 years ago, and I think he's done a good job navigating the business towards services. However, as I was reading the proxy, I found myself getting increasingly annoyed. Yelp's management team has a base salary, annual cash incentives, and performance-based stock bonuses tied to revenue and relative return metrics. I was particularly frustrated to see that the co-founder and CEO, who owns 6.3% of the company, is taking an extra $10 million in annual stock compensation. This seems unnecessary given he could benefit directly from share price appreciation."

Ryan acknowledges CEO Jeremy Stppleman’s role in pivoting Yelp towards a stronger services model, but he criticizes the management compensation structure. He is especially troubled by the extra $10 million in stock compensation awarded to the CEO despite his significant ownership, suggesting it may not align with shareholder interests.

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