Roblox founder and CEO David Baszucki has been awarded a significant pay raise in the wake of the company’s success. He will receive compensation of almost $233 million.
According to a regulatory filing on April 4, Baszucki will receive $232.8 million by 2028 (via Reuters). It represents a 3323% increase compared with $6.8 million a year earlier.
The majority of the sum is a part of the so-called long-term performance award, a pay method used by companies like Tesla to retain executives by tying their earnings to company performance. This practice led to many CEOs getting hundreds of millions of dollars. For example, Activision Blizzard CEO Bobby Kotick’s compensation for 2021 was $154 million.
Baszucki will get the $232.8 million only if Roblox shares achieve certain milestones. His base salary, meanwhile, has been reduced to $0, meaning that he won’t receive any other direct compensation through to 2027.
The Roblox CEO should help the company’s stock price reach $165 per share by March 2023, with the ultimate goal being $375 per share by March 2026.
Roblox stock, however, currently stands at $50 per share, which is a 28% decrease compared with March 2021, when the company started publicly trading.