In a display of audacity and in harmony with the evolving nature of corporate pay, Zoom Video Communications Inc. has announced its readiness to scale down its long-term stock compensation drastically. This tendency of rational rewards seems to put Zoom on the same boat as other tech companies like Salesforce Inc. and Workday Inc. who have already implemented similar measures due to maturing investors’ pressure and market reality.
The press statement was made available to the public on September 20, 2024 since Zoom is trying to find a way to keep their employees motivated while at the same time alleviating their shareholders’ fears of stock dilution. The escalation of remote working solutions to quite a number of people during the COVID-19 pandemic period created enormous value for Zoom which, thereby, made stock awarded compensation very expensive to the organization.
Eric Yuan, the CEO of Zoom, insisted that the change does not mean that the company’s dedication towards top performers will be relaxed. Rather, it seeks to reposition how they are going to compensate their employees. Yuan said, “We are still committed to the recognition and the achievements of our people. This change makes it possible for us to anchor the aspirations of our workers toward the expectations of our owners.”
The action s ‘flow as part of a wider practice within the technology sector in the reappraisal of reward systems to meet organizational strategy and the surrounding environment. Salesforce and Workday
#Zoom #Salesforce #Workday #Stock-Based #Compensation #Tech #Industry #Shareholder #Value #Employee #Incentives #Remote #Working #COVID-19
Author: Liam Carter
