Dive Brief:
- Late last week, Twitter's plummeting stock price and the ongoing threat of high-level talent loss led to the company doling out large bonuses and additional stock to keep key people in the fold, according to ComputerWorld.
- ComputerWorld cited a mid-week Wall Street Journal report that said the bonuses, which reached six figures ($50,000 to $200,000), were not just for top level executives, but also for "junior players."
- Though the company would not comment on the WSJ article, it did tell ComputerWorld via email that "developing, retaining, and recruiting top talent is critical to Twitter's business success and building shareholder value."
Dive Insight:
ComputerWorld says that despite Twitter's usefulness, it is still losing money and growth has been stagnant. It also notes that four members of its leadership team left the company within the past four months, including top HR leader Brian Schipper.
Dan Olds, an analyst with The Gabriel Consulting Group, told ComputerWorld that Twitter is also losing talent to Silicon Valley competitors at an increased rate, which calls for quick action and may explain the high bonuses.
"If Twitter is at risk of losing key employees, that would be a real punch in the gut," Jeff Kagan, an independent industry analyst, told ComputerWorld. "Silicon Valley does not have an unlimited number of key workers. And every company wants them. The alarm must be sounding at Twitter."
