Uhm, this just doesn't seem right to me...
One potential theory is that these stock incentives were put in place in order to prevent the early departure of SeaWorld’s executives since the individuals do not get the full sum of money unless they stay with the company until 2022.
Quote from the article:
This could make a lot of sense. If SEAS is in dire straights, it may really be smart to try to hang onto all the leadership you can (especially since they seem to have been presiding over a real SEAS rebound).
The optics here are ABOMINABLE, don't get me wrong, but this could be a desperate attempt to keep leadership from totally crumbling.
Pr wise it looks really bad but playing devil's advocate for a moment. It's over a two year period so they are not necessarily spending the capital on it right now. It's important to hold on to key leadership to help have a smooth and safe reopening when the time comes. It also may help stabilize the stock price and instill some more faith in the investors and help keep the company around that way.Uhm, this just doesn't seem right to me...
And:It's absolutely disgusting. Here's $7 million that we saved from not paying our team members and management. Ugh.
How to tank your company 101 passed with flying colors.
I can tell you on my Facebook feed this morning, I saw a friend (fellow park enthusiast but not from VA) putting together a petition to boycott SEAS that already has 2500+ signatures because of this news.
[eye rolling intensifies]
Seriously though, all of this SEAS leadership hate is exposing an incredible level of immaturity in the community.
Which portrays the bonus as a 'benefit' for handling the crisis so well as opposed to something that existed that they are altering to reflect the hardships. Maybe they should have started a new sentence with the last part and say it was also an effort to delay and hardships to the company during the pandemic, or something of the matter.the Compensation Committee of the Board of Directors of SeaWorld Entertainment, Inc. (the “Company”), approved certain equity awards designed to recognize employees for their extraordinary contributions and continued expected contributions to the Company and its long term goals during the global COVID-19 pandemic.
The actual what happened isn't as bad as it looks, however right now the PR hit from executing and reporting that it was done is getting quite a bit of backlash. I can tell you on my Facebook feed this morning, I saw a friend (fellow park enthusiast but not from VA) putting together a petition to boycott SEAS that already has 2500+ signatures because of this news.
Link to this petition?
Looking at this move, I see two possibilities:
- SEAS executive team is insular to the effects of what they are doing and isn't connected at all to what is happening on the ground. This isn't uncommon in companies and bad press and backlashes correctly comes out of it.
- SEAS is being strategic in keeping key personnel through what will be a very trying time financially, including possibilities of bankruptcy or a sale/merger.
Diluting shareholder value for unnecessary bonuses while the company is in a financial crisis is rarely going to be looked at well. Most companies are correctly reducing executive packages to save money and demonstrate a commitment to keeping their company afloat. SEAS is doing the opposite. Just because a program existed before doesn’t mean it’s a good idea in a crisis particularly when its a total buyers market for most labor right now. None of those executives have other offers in this market and there are dozens of equally competent replacements out (or soon to be out) looking for work.I'll give a 3rd:
The SEAS executive team knew exactly what they were doing in extending the dates of the program already in place, and though that extending it during this time was going to be looked at favorably, but instead it got mis-reported as to what it really is.