To The Moon

Forrest Li, CEO of Sea Ltd, wrote a memo to rally its staff to achieve positive cash flow for the company as fast as possible. The bearish sentiment has made fund raising difficult. To achieve the goal, the management will forgo salaries and rein in expenses. The message was specific to cash-based compensation and that could mean share grants may continue for the executives. That could be limited in scope too considering that Forrest didn't receive any stock options since 2020. About 10,000 stock options were given to the management in 2021. Estimated to cost just US$150,000.In FY21, the directors and executives received US$6.4m in compensation. Compared to the cash flow from operations of US$209m, it is a mere 3% difference. Unlikely to move the needle for Sea. The signalling is more impo