BuzzFeed CEO moves to majority stock based compensation amid AI push

BuzzFeed

17/05/2024 17:05

May 17 (Reuters) - A major part of BuzzFeed  BZFD.O  CEO
Jonah Peretti's compensation will now be in stock options, the
digital media firm said on Friday, amid efforts to boost the
adoption of artificial intelligence to speed up a turnaround.
    The company has awarded Peretti options to purchase 414,000
shares of its Class A common stock. About 40% of that is
intended to approximate a reduction in his annual base salary to
$115,000 from $325,000. The stock options have a strike price at
the current value, the company said.
    "During inflection points, it's best to organize ourselves
like a startup, where we can act quickly," Peretti said on
Friday. 
    BuzzFeed is also extending stock incentives to other senior
executives, as it bets on AI-powered offerings to power its
growth after a tough period caused by a downturn in the digital
ad market and shift in spending towards social media platforms.
    The company's shares were up 6.7% in afternoon trading, set
to add to its 130% gains so far this year. They had declined
about 64% in 2023 and 87% in 2022. 
    Still, the stock is trading at $2.32, a fraction of $21.32
it ended at in 2021.
    "We are already seeing the early benefits of AI adoption,
and I believe the next three years will offer an opportunity for
significant value creation," Peretti said.
    

 (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Sriraj
Kalluvila)
 ((ArsheeyaSingh.Bajwa@thomsonreuters.com; +91 8510015800;))