Steven Huffman
About Steven Huffman
Steven L. Huffman is Reddit’s co-founder and has served as Chief Executive Officer, President, and a director since July 2015. He holds a B.S. in Computer Science from the University of Virginia and is 41 years old as of March 31, 2025 . As CEO during Reddit’s first public year, 2024 Pay vs Performance disclosures show revenue of $1,300 million, company TSR of $324.03 per $100 invested from the March 21, 2024 trading debut through year-end, and net loss of $(484) million; Adjusted EBITDA was a 2024 bonus metric and came in at $298.0 million, driving a 225% corporate bonus payout factor .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Reddit, Inc. | Co-founder; various leadership roles | 2005–2009 | Founding engineering/leadership roles at inception |
| Hipmunk | Co-founder & Chief Technology Officer | 2010–2015 | Built travel search technology; executive operating experience |
| Reddit, Inc. | Chief Executive Officer, President, and Director | 2015–present | Returned as CEO to scale platform; continuous board service since 2015 |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Bishop Fox | Director | Since July 2019 | Cybersecurity firm directorship |
| GameChanger Charity | Director | Since Dec 2020 | Non-profit supporting hospitalized children |
| Vy Global Growth | Director | Sept 2020–Sept 2022 | SPAC directorship (prior public company board) |
Board Governance (director service, committees, dual-role implications)
- Service: Employee director (CEO) since July 2015; not compensated for board service as a director (compensated as an employee) .
- Board leadership: Independent Chairperson is Patricia Fili-Krushel, separating chair and CEO roles .
- Committees: Audit (Habiger—Chair, Farrell, Sauerberg) and Compensation & Talent (Fili‑Krushel—Chair, Farrell, Gale) comprised of NYSE‑independent directors; CEO is not listed as a committee member .
- Governance agreement: Advance (principal stockholder) retains significant approval rights; election of the Chair requires the consent of Advance and Mr. Huffman while he is CEO—elevating entrenchment/control considerations despite an independent chair structure .
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary Paid ($) | 200,000 | 341,346 | 531,154 |
| Base Salary Rate ($) | — | 450,000 | 550,000 |
| Target Bonus (% of Salary) | — | 125% | 125% |
| Target Bonus ($) | — | — | 687,500 |
| Actual Cash Bonus Paid ($) | — | 792,000 | 1,546,875 |
| All Other Compensation ($) | 7,375 | 7,375 | 535,840 (incl. $528,465 personal security) |
Notes:
- 2024 base salary rate increased 22.2% vs. 2023 (from $450,000 to $550,000) following Pearl Meyer market review .
- 2024 bonus plan funded at 225% based on DAUq, revenue, and Adjusted EBITDA outperformance (see next section) .
Performance Compensation
Annual cash incentive plan (2024)
| Metric | Weight (%) | Threshold (50% payout) | Target (100%) | Max (225%) | 2024 Actual | Payout Factor (%) |
|---|---|---|---|---|---|---|
| DAUq | 40 | 78.0 | 87.0 | 96.0 | 101.7 | 225 |
| Revenue ($ in millions) | 40 | 980.0 | 1,030.0 | 1,080.0 | 1,300.2 | 225 |
| Adjusted EBITDA ($ in millions) | 20 | — | 15.0 | 35.0 | 298.0 | 225 |
| Total | 100 | — | — | — | — | 225 |
- 2024 payout: 225% of target; for Mr. Huffman, this yielded $1,546,875 on a $687,500 target .
- 2024 target mix emphasizes corporate metrics (DAUq, revenue, Adj. EBITDA), reinforcing line-of-sight to growth and profitability .
Equity awards, realizations, and vesting
| Item | Detail |
|---|---|
| 2023 Equity Grants | Granted outsized equity: Stock Awards $98,332,716 and Option Awards $93,776,049 (ASC 718 grant-date fair value) . |
| 2024 Equity Grants | Company states no RSUs granted to Mr. Huffman in 2024, given retentive value of existing equity . |
| 2024 Realizations | Exercised 989,739 options (value realized $95,888,067) and vested 3,019,201 RSUs (value realized $127,830,049) . |
| Vesting Schedules (program design) | 2017 Plan RSUs: quarterly over 1 year; 2024 Plan RSUs: quarterly over 3 years; select award cliff-vests Nov 20, 2026; all subject to continued service. (Described for 2024 awards to NEOs; Mr. Huffman did not receive 2024 RSUs) . |
Equity Ownership & Alignment
| Holder | Class A Shares | % Class A | Class B Shares | % Class B | % Total Voting Power |
|---|---|---|---|---|---|
| Steven Huffman (beneficial) | 1,175,115 | 1.0 | 3,897,083 | 6.9 | 5.8 |
| Shares subject to voting proxy (footnote 3) | 7,767,639 | 6.0 | 46,851,464 | 85.0 | 70.0 |
| Total (beneficial + proxy) | 8,942,754 | 7.0 | 50,748,547 | 91.9 | 75.8 |
- Hedging/pledging: Reddit prohibits hedging and pledging by directors and officers; margin accounts and pledges are prohibited under the Insider Trading Policy (with limited legacy exceptions) .
- Trading plans: Directors and officers may utilize pre-cleared Rule 10b5‑1 plans with mandatory cooling-off periods .
- Director compensation: Mr. Huffman receives no director fees; compensation is solely via his executive package, improving alignment versus fee-based director compensation .
Employment Terms
| Scenario (as of 12/31/2024) | Cash Severance | Prorated Target Bonus | Medical (COBRA) | Equity Acceleration | Total |
|---|---|---|---|---|---|
| Covered Termination – No Change of Control | $550,000 | — | $36,690 | $190,381,895 | $190,968,585 |
| Covered Termination – With Change of Control | $825,000 | $687,500 | $55,036 | $761,527,726 | $763,095,262 |
Key terms:
- Double-trigger CIC: If terminated without cause or resigns for good reason in the 3 months before or 12 months after a CIC, Mr. Huffman receives 18 months of base salary, prorated target bonus, COBRA, and full acceleration (performance goals at target) .
- Non-CIC covered termination: 12 months of base salary, up to 12 months COBRA, and 12 months of additional time-based vesting .
- Clawback policy adopted Feb 2024 compliant with SEC/NYSE rules; recovery applies to incentive-based pay upon restatement .
- No excise tax gross-ups; no pension/SERP; at-will employment; insider trading/10b5‑1 governance detailed in filings .
Performance & Track Record
| Measure (FY2024 context) | Reddit Result |
|---|---|
| Company TSR (from 3/21/2024 to 12/31/2024) – $100 initial | $324.03 |
| Peer Group TSR (DJINET) – $100 initial | $118.17 |
| Revenue ($ millions) | 1,300 |
| Net Income ($ millions) | (484) |
| 2024 Bonus Funding (Corporate) | 225% |
Highlights:
- Outperformance on DAUq, revenue, and Adjusted EBITDA drove maximum 225% bonus funding in 2024 .
- Pay-versus-performance framework identifies revenue as the company-selected measure; disclosures reflect high equity sensitivity in “compensation actually paid” .
Compensation Structure Analysis
- Mix/at-risk: CEO pay emphasizes variable compensation (target bonus at 125% of salary; large equity from 2023 grants), aligning realized pay with operating and share performance .
- Year-over-year changes: Base salary rate increased to $550,000 for 2024 (+22.2%); target bonus unchanged at 125% .
- Equity approach: No 2024 RSUs granted to Mr. Huffman due to existing award overhang; broader NEO grants utilize time-based RSUs with quarterly vesting (retention) and one notable cliff award design .
- Governance safeguards: Double-trigger CIC; clawback; prohibition on hedging/pledging; independent compensation consultant (Pearl Meyer) .
Related-Party/Policies Noted
- Insider Trading Policy: Prohibits trading on MNPI, hedging, short sales, options transactions, pledging, and margin accounts; outlines blackout and 10b5‑1 plan rules .
- Director compensation program and independence for committee roles detailed; Mr. Huffman receives no board pay .
Say-on-Pay and Shareholder Feedback
- Board recommends annual frequency for advisory votes on executive compensation (“say on frequency”) .
- Executive compensation proposals and meeting logistics for 2025 Annual Meeting are disclosed; results not yet included in the filing excerpt .
Compensation Committee Analysis
- Composition: Independent directors Sarah Farrell, Patricia Fili‑Krushel (Chair), Porter Gale; scope includes executive pay, equity plans, succession, and clawback administration .
- Advisor: Pearl Meyer provides market analyses supporting base and bonus decisions .
- Practices: Pay-for-performance orientation, double-trigger CIC, no excise tax gross-ups, no pensions; risk assessment concluded practices are not reasonably likely to cause material adverse risk .
Investment Implications
- Alignment and control: Mr. Huffman holds meaningful economic exposure and substantial voting influence when including shares subject to a voting proxy, totaling 75.8% of voting power—supporting strategic continuity but elevating entrenchment risk under the Governance Agreement with Advance .
- Incentive calibration: Cash incentives are tightly linked to user growth (DAUq), revenue, and profitability (Adj. EBITDA), and paid at 225% for 2024 outperformance—indicating near-term growth execution emphasis; equity structure and prior-year mega grants further tie outcomes to stock performance .
- Deal/M&A optionality: Double-trigger CIC with full acceleration at target for performance goals and very large estimated acceleration values (>$761 million in a CIC scenario as of 12/31/2024) could be an M&A overhang or negotiation factor .
- Trading supply dynamics: 2024 included sizable option exercises and RSU vesting for Mr. Huffman, and while insider trading under 10b5‑1 plans is permitted, pledging/hedging is banned—mitigating alignment risks but suggesting potential periodic supply windows as scheduled sales occur .
- Governance mitigants: Separation of Chair and CEO and independent committees are positives; however, Advance/Huffman consent rights around chair selection and other strategic actions underscore concentrated control risk that investors should price into governance assessments .