Snap Co-Founders To Take $1 Annual Paycheck After Dismal Q2 Results

Snapchat parent Snap Inc SNAP co-founders Bobby Murphy and Evan Spiegel have agreed to serve in their respective executive roles for a compensation of $1 per year.

What Happened: Murphy and Spiegel entered into “new long-term employment agreements” with Snap to serve as chief technology officer and chief executive officer, respectively, at least through Jan. 1, 2027, for $1 per year, according to an investor letter.

The duo will receive no equity compensation but the board agreed to issue a stock split in the form of a dividend of one Class A share for each outstanding share should the Class A share price reach $40 within the next 10 years.

“The effect of the stock dividend, if paid, would allow Snap’s co-founders to donate or sell additional Class A shares instead of donating or selling Class B or Class C shares,” Snap said.

See Also: How To Buy Snap Inc (SNAP) Shares

Why It Matters: Murphy and Spiegel control over 99.5% of Snap’s voting rights, according to the company.

For the stock split to take place, the company’s shares would have to rise more than threefold from current levels.

Snap posted second-quarter revenue of $1.11 billion, a rise of 13% from a year earlier. The company reported a loss of $0.02 per share, missing a Wall Street estimate of a loss of $0.01 per share.

The company said its second-quarter results “do not reflect our ambition for our business.”

Price Action: On Thursday Snap shares plunged 26.9% to $11.97 in extended trading, after closing 5.5% higher at $16.37, according to data from Benzinga Pro.

Read Next: Elon Musk’s Giga Texas Head Could Exit Tesla Over ‘Suspicious’ Glass Order Probe Linked To ‘Secret Project:’ Report

Image and article originally from Read the original article here.