Reddit CEO's $193 million salary ignites debate over unpaid moderators
Reddit CEO Steve Huffman is under fire for his substantial $193 million salary package, while the platform's moderators receive no financial compensation. The issue has been thrust into the spotlight as Reddit recently went public, with shares priced at $34, giving the company a valuation of $6.4 billion. Huffman justified his salary during a Q&A video on subreddit RDDT, stating, "If the company does well, I will do well. If the company does not do well, I don't either."
Reddit's financial health and user backlash
Despite being in operation for 20 years, Reddit has yet to become profitable, posting a loss of $90.8 million in 2023. This financial performance has led to questions about Huffman's salary justification. His popularity among users is also waning due to contentious changes to the platform's API and provocative remarks toward moderators. In response to these changes, nearly 3,500 subreddits went offline for 48 hours.
Huffman's AMA session and Reddit's new course
Huffman's attempt to address concerns through an Ask Me Anything session was met with widespread dissatisfaction. His description of moderators as "landed gentry" further distanced users, prompting one to comment that "the admins have failed Reddit." Instead of prioritizing user value and volunteer self-governance, Reddit has agreed to supply content to Google for AI training, a decision now being scrutinized by the US Federal Trade Commission.
Reddit's IPO performance amid controversy
Despite the controversy surrounding Huffman's salary and Reddit's direction, the company's IPO launched at the top of its projected range. Shares soared as much as 70% following its debut. However, forecasts about its future performance are varied, with some users accusing the company of artificially inflating its stock value. Users and moderators were offered a chance to participate in the IPO but many declined due to disenchantment with the company.
Moderators voice discontent and mistrust
Moderator Sarah Gilbert told CNBC that it felt like Reddit was demanding more without giving back. Another moderator, Courtnie Swearingen, stated, "Even with the opportunity to buy in, I would not. I cannot risk money on a company that I haven't been able to trust for a decade." These statements echo the growing disillusionment among moderators and users toward Reddit's leadership and direction.
