Mylod: Ignoring stock compensation caused 15 years of runaway tech pay
Bob Mylod · Ep5. Stock Comp, AI Cold War, Valuations for LLM | BG2 with Bill Gurley, Brad Gerstner, & Bob Mylod · Bg2 Pod · Mar 21, 2024 · at 22:04
Bob Mylod (Chair of Booking Holdings) discusses corporate governance failures around pro-forma earnings and non-GAAP metrics that exclude stock compensation.
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“And for a tech company, oftentimes stock-based compensation happens to be the single largest expense component of a tech company. And yet somehow inexplicably, even though it's the largest single expense component of that company it is not considered to be even an expense in some companies and in some boardrooms. And the result of that is that you've seen runaway stock-based compensation on an almost uninterrupted basis for the better part of 10 to 15 years.”
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