Stock based compensation: Who Twitter pays to retain? An analysis vs Facebook.
For What It’s Worth
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Ryan — agree with your analysis. My main goal here was to show 1) Twitter’s strong focus on sales/marketing in spite of the challenges they are facing in user growth and 2) how much more Twitter was spending on Sales/Marketing resourcing (per employee or per revenue dollar) vs Facebook (or the industry). Both these points were telling to me since Twitter has been on the receiving end of analysts’ and shareholders’ concerns with respect to high stock based compensation (as a percent of revenue) and still they have this very high skew towards non R&D resourcing. It could be that Twitter’s product is difficult to sell which is why they have to employ trained and experienced sales folks (vs Facebook) or they dole out less cash and more stock — but I wanted to show some data to ask these questions.

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