Palantir, the controversial data analytics company founded by Peter Thiel, is making a big change to the bonuses it pays employees.
Instead of getting cash bonuses, Palantir employees will receive restricted stock units, according to a memo obtained by Business Insider.
The change means that employees will not be able to cash out their bonuses until Palantir goes public or is acquired by another organization.
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Palantir is phasing out cash bonuses for employees following a company review of how it spends its resources, according to an internal memo obtained by Business Insider.
The secretive data analytics company, founded by conservative billionaire Peter Thiel in 2003, will issue this year’s bonuses half in cash and half in Restricted Stock Units, director Khan Tasinga said in the email to staff on Friday. By 2021, company bonuses will be entirely RSUs, according to the email.
The change is likely to cause ripples among Palantir’s ranks of employees, since it means their bonuses will effectively be worthless until the privately-held company, last valued at $20 billion in 2015, lists its shares on the stock market or is acquired.
“Palantir has entered a new stage where we need to not only continue focusing on growth, but also to ensure that growth is long-term sustainable as we march toward a successful IPO,” Palantir’s Tasinga said in the email. “Doing so requires revising assumptions and reevaluating how we can best use company resources to advance the business while supporting our people.”
Palantir declined to comment.
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The change comes at a time of financial uncertainty for the company, which was widely viewed as an IPO candidate for 2019. In June, Palantir cofounder Joe Lonsdale told an audience that he …read more
Source:: Business Insider