Compass is cutting employee pay, replacing it with equity - Business Insider

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SoftBank-backed Compass is cutting pay and offering equity in exchange — a month after it slashed 15% of staff

Compass is cutting pay by up to 50% across the firm, with the exception of its product and engineering team and employees who help to recruit new agents.

The employees will receive restricted stock units equivalent to the reduction of salary on August 1 of this year. With coronavirus causing a housing market slowdown, the residential real estate space has seen widespread layoffs, including layoffs at Opendoor and Redfin.Compass is cutting pay 10-50% across the firm and replacing the lost wages with stock-based compensation, according to a report.or 375 employees as the coronavirus is causing a dramatic slowdown for the US housing market.

The pay cuts do not affect Compass's product and engineering team of about 500 or its "strategic growth managers," who recruit new agents, according to a. The cuts are temporary, lasting for only three months, the report said. The pay cuts comes in tiers, with some executives seeing as much as 50% pay cuts. Those that make less than $75,000 will see a 10% reduction in salary, those that make between $75,000 and $150,000 will see a 20% reduction, and those making more than $150,000 will have their salary cut by 30%. Employees will receive restricted stock equivalent to the amount of the salary reduction on August 1 of this year. In March, CEO Robert Reffkin announced that he would be taking no salary for the year.

 

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