(Reuters) – A major part of BuzzFeed CEO Jonah Peretti’s compensation will now be in stock options, the digital media firm said on Friday, amid efforts to boost the adoption of artificial intelligence to speed up a turnaround.
The company has awarded Peretti options to purchase 414,000 shares of its Class A common stock. About 40% of that is intended to approximate a reduction in his annual base salary to $115,000 from $325,000. The stock options have a strike price at the current value, the company said.
“During inflection points, it’s best to organize ourselves like a startup, where we can act quickly,” Peretti said on Friday.
BuzzFeed is also extending stock incentives to other senior executives, as it bets on AI-powered offerings to power its growth after a tough period caused by a downturn in the digital ad market and shift in spending towards social media platforms.
The company’s shares were up 6.7% in afternoon trading, set to add to its 130% gains so far this year. They had declined about 64% in 2023 and 87% in 2022.
Still, the stock is trading at $2.32, a fraction of $21.32 it ended at in 2021.
“We are already seeing the early benefits of AI adoption, and I believe the next three years will offer an opportunity for significant value creation,” Peretti said.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Sriraj Kalluvila)
