In no year has Stripe ever made a profit.
For comparision in 2019 Stripe had 4,000 employees, Credit Suisse 50,000.
https://www.bloomberg.com/news/articles/2023-03-06/stripe-de...
Banks are different.
One of the greatest coups of lobbying was when the finance industry convinced politicians all over the world that banking ist just like any other industry and thus should not be regulated more than other industries.
On one hand, it's safer they only hold money for a day or two.
On the other hand, no FDIC insurance. If Stripe (or Visa or Mastercard) were to poof, what would actually happen to in-flight money? Seems like you could pretty easily lose a day or two where the client got charged, and it never got paid out.
However, the money may be stored in a money market account i.e short term bonds or even if it's a more normal savings account the bank itself depends on fractional lending and bonds.
I'm be very surprised if any major payment processor hasn't vetted the institutions that hold transaction funds. That said some payroll companies were hit by SVB's collapse but more so on not being able to accept checks than loosing already received funds.
Fbo accounts are technically the banks, the processor keeps the records of whose funds are whose within the account and the fdic limit applies to the beneficiary (the person the processor is holding the funds for).
Source: I worked for the treasury group at a payment processor.
This doesn't mean that a bonus structure isn't appropriate. Bonus are supposed to be an incentive. Achieve bold goals -> get bonus.
If anything this is more important in growing companies than in stable, profitable companies, which have achieved a sustaining business model. Why pay a bonus to people just following the algorithm.
No judgement on Stripe's specifics.
It feels like this is misrepresenting the situation quite a bit. This is not a tax bill on bonuses. This is a tax bill on equity, which is a part of the regular compensation package, and an awkward situation due to that equity being illiquid as Stripe has not gone public.
Other than the word "raising" that statement is completely incorrect.
> $3.5 billion
Recent article mentioned this was north of 5B
> tax rate 22%
That's not accurate even for US and they have employees worldwide.
> In no year has Stripe ever made a profit
Source?
> (some of)
Almost all employees get stock based compensation at big tech companies
> bonuses
These are salaries or stock based comp, not bonuses
> comparision in 2019 Stripe had 4,000 employees
Source?