Category: Money

Uber losses expected to hit $3 billion in 2016

Money quote:

While that kind of sales growth is normally impressive, considering the $3 billion in anticipated losses, Uber is apparently spending $1.55 for every dollar it makes.

I confess to being an Uber user, along with S.O. But I’m a guilt-stricken one. There’s the time I paid about $11 for a ride from the airport, a trip that cost about $40 in the bad, evil, no-good, pre-Uber economy. Instead of cackling with glee at the savings produced by the sharing economy, I felt vaguely ashamed as a feeble, near-sighted old man drove me home.

Uber’s losses are growing from $2.2 billion last year to an expected $3 billion this year, according to multiple reports this week from The..

Source: Uber losses expected to hit $3 billion in 2016 despite revenue growth | TechCrunch

$500K in moving expenses? IT executive compensation, Raleigh-Durham style

Now that I’ve spent eight months or so working in the IT business, I have a more nuanced understanding of executive compensation. For one thing, I now appreciate that top managers are being paid partly to bear the enormous pressure that comes with running companies with thousands of employees and stockholders, and annual revenues in the nine, 10, or 11 figures.

But it still doesn’t make it much less mind-boggling when you read something like this (which is completely commonplace). From a TBJ report today:

In a prepared statement, Calderoni called Red Hat “an exceptional company” and said it was “well positioned to continue to leverage the broad transformation that is occurring in the IT industry.”

Calderoni was CFO at Cisco before taking the role at Red Hat in June 2015. He received a $4 million signing bonus and $500,000 in moving expenses to take over from longstanding CFO Charlie Peters.

Including his signing bonus and stock awards, Calderoni secured a pro-rated $15.4 million in total compensation for fiscal 2016, according to Red Hat’s proxy statement. But securities filings show a caveat. If Calderoni resigns “without Good Reason” within two years of July 2015, he must repay a pro rata share of a $4 million bonus amount based on the number of days remaining in that period.

An experiment in Oulu

 

Good piece in the Times business section today. I have a special interest because my S.O. is half-Finnish, and her maternal grandparents are buried in Oulu, the setting for this experiment. I’ve been to Oulu twice, in fact.

Also covering the topic of a guaranteed basic minimum income was this Freakonomics podcast from last April. I remember a quote from a proponent that went like this: (paraphrase) “Even if most recipients of a basic income spend it all on weed and sit at home playing video games, it would be a huge net gain for society.”

Finland will soon hand out cash to 2,000 jobless people, free of bureaucracy or limits on side earnings. The idea, universal basic income, is gaining traction worldwide.

Source: Free Cash in Finland. Must Be Jobless.