BuzzFeed approves bonuses for top executives

Published 28/02/2025, 22:36
BuzzFeed approves bonuses for top executives

BuzzFeed, Inc. (NASDAQ:BZFD) has announced the approval of cash and equity bonuses for its top executives, including CEO Jonah Peretti. According to InvestingPro data, the company currently operates with a market capitalization of $81.32 million and faces significant financial challenges, with a weak overall health score of 1.34. The Compensation Committee of the digital media company agreed on the bonuses on February 24, 2025, with further approvals for key executives by the Board of Directors the following day.

Jonah Peretti, BuzzFeed’s Chief Executive Officer, will receive a cash bonus of $50,076 and 10,241 restricted stock units (RSUs). These executive compensations come as the company faces challenging financial metrics, including a debt-to-equity ratio of 2.04 and negative EBITDA of $0.44 million in the last twelve months. The RSUs are set to vest fully on the first anniversary of the grant date, as per the terms of the BuzzFeed, Inc. 2021 Equity Compensation Plan. David Arroyo, the Chief Legal Officer, and Matthew Omer, the Chief Financial Officer, will also receive significant bonuses. Arroyo is set to receive $84,094 in cash and 17,372 RSUs, while Omer will be awarded $82,733 in cash and 17,091 RSUs.

The cash bonuses for these executives will be distributed in four equal installments during the final pay periods of March, April, May, and June 2025. This decision reflects the company’s strategy to compensate and incentivize its leadership team, aligning their interests with the company’s performance and goals. InvestingPro analysis reveals that despite challenges, analysts anticipate sales growth of 33% in the current year. Get access to 13 additional ProTips and comprehensive financial analysis with an InvestingPro subscription.

The announcement comes as part of a routine 8-K filing with the Securities and Exchange Commission (SEC) and provides insight into the compensatory arrangements for certain officers at BuzzFeed. The company, known for its digital content and news, operates under the communication services sector and is headquartered in New York City.

The news of these bonuses is based on a press release statement and reflects the company’s current financial decisions regarding executive compensation. BuzzFeed has not provided additional comments on the future implications of these bonuses or their expected impact on the company’s performance.

In other recent news, BuzzFeed, Inc. announced a workforce reduction of approximately 5% aimed at streamlining operations at HuffPost. The company expects to incur restructuring charges between $1.8 million and $2.0 million, primarily in the first quarter of 2025, with anticipated annual pre-tax savings of around $4.0 million starting from the second quarter. In a separate development, BuzzFeed has extended the deadline for Option Repurchase Notices to March 31, 2025, by paying a cash fee of $0.9 million to Wilmington Savings Fund Society, FSB. This extension is part of the company’s ongoing financial strategy to manage its obligations effectively. Additionally, BuzzFeed has sold its culinary brand, First We Feast, to a group led by Soros Fund Management LLC for $82.5 million in cash, allowing the company to hold a cash balance exceeding its remaining debt. BuzzFeed is shifting focus towards higher-margin, tech-driven revenue streams, including programmatic advertising and affiliate commerce, with an emphasis on leveraging artificial intelligence. The company has provided guidance for its fourth-quarter earnings, projecting revenues between $54 million and $58 million and an Adjusted EBITDA of $4 million to $9 million. BuzzFeed’s financial results for the fourth quarter and full year 2024 are scheduled for release on March 13, 2025.

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