Monday.com CEOs Seek Salary Doubling Amid Massive Layoffs and Workforce Fluctuations

Monday.com, the Israeli software company, is facing scrutiny after its co-CEOs, Roy Man and Eran Zinman, requested a significant salary increase while simultaneously conducting large-scale layoffs. Ahead of a shareholder meeting scheduled for Thursday, the company revealed plans to raise each CEO's annual compensation from $7.3 million last year to $14 million by the end of 2029. Additionally, both are eligible for bonuses up to 200% of their base salary.

This announcement comes shortly after Monday.com initiated layoffs affecting approximately 620 employees, following a 48% stock price drop six months earlier. Despite this, the company increased its workforce by 26% earlier in the year, adding around 650 employees globally, nearly matching the number later laid off. The contradictory moves have raised questions about the company's management culture.

The CEOs initially denied any plans for layoffs, citing artificial intelligence (AI) as a growth driver requiring more hires. However, they later acknowledged that AI necessitates organizational restructuring, including middle management cuts and team flattening. The company also reversed its earlier decision to expand office space in Tel Aviv, opting for a smaller footprint after initially announcing plans to lease 11,000 square meters.

Financially, Monday.com reports strong performance with adjusted net profits of $56 million in the last quarter, $1.2 billion in cash reserves, and revenue growth projections. Yet, its stock trades at a low forward price-to-earnings ratio of 18, down from over 80 last year, reflecting market skepticism amid fears that AI could disrupt its core task management software.

Monday.com justifies the CEO pay hike by highlighting the significant growth since its 2021 IPO and the broad responsibilities shouldered by the two leaders. The company aims to align their compensation with the 50th percentile of comparable firms, increasing base salaries and equity incentives gradually through 2029. The CEOs pledge to lead Monday.com into the AI era by expanding enterprise contracts and managed AI services, though their prior contradictory statements on layoffs and hiring have fueled doubts among employees and investors.

Summary: Monday.com's co-CEOs seek to double their pay amid a wave of layoffs and workforce changes, despite strong financial results and market skepticism about the company's future amid AI disruptions.

Points: - Monday.com plans to double co-CEOs' salaries to $14 million annually by 2029. - The company laid off about 620 employees after previously expanding its workforce by 26%. - CEOs initially denied layoffs, later cited AI-driven restructuring as the cause. - Monday.com reversed plans to expand Tel Aviv offices, downsizing leased space. - Despite $56 million quarterly profit, stock trades low due to AI disruption fears. - CEO pay hike justified by company growth and broad executive responsibilities.

Topic: economy israel_relevant: true Entities: {"people": ["Roy Man", "Eran Zinman", "Steve Jobs", "Nadav Abrahami"], "organizations": ["Monday.com", "Wix", "Nasdaq"], "places": ["Tel Aviv", "Israel"]}