The Founder of Roblox Just Got a Hefty Pay Increase

Gaming platform Roblox Corp’s founder and chief executive officer David Baszucki’s compensation package for 2021 were a lot higher than the previous year.

According to a regulatory filing this week, the packages totaled $232.8 million, compared with just $6.8 million a year earlier.

The bulk of the pay package comprises a long-term performance award for Baszucki, which was valued at $232.2 million.

Baszucki will not get any other direct compensation through 2027, but will receive the award in parts over the years only if Roblox shares achieve certain milestones, the filing added.

The Long-Term Performance Award” is a pay method followed by some companies as a way to retain top executives by tying their earnings to company performance. The plan has faced criticism, as it has led to payouts worth billions to founders. Tesla has such a plan as well.

Roblox made it’s market debut in March last year and posted an 83% rise in revenue. The company had a wider-than-expected 25 cents per share loss in the fourth quarter in February.

“Mr. Baszucki was particularly receptive to receiving the Founder and CEO Long-Term Performance Award as he believes that he should be rewarded only if significant long-term outperformance is delivered,” reads a regulatory filing announcing the new pay packet for the CEO. The document also adds that Baszucki intends to “donate the net proceeds [of the award] for philanthropic purposes.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.