I thought I’d update my Straw on culture for LVT.
I don’t own LVT. It appears like it has a lot of positives going for it but I thought I’d point out what I came across regarding company culture and management. Poor company culture in particular is why I think LVT is going to have more difficulty succeeding.
Since first posting 11 months ago, LVT had 43 Glassdoor reviews, they now have 62. Overall score has improved from 3.1/5 to 3.6/5, CEO approval has improved from 45% to 68% and “recommend to a friend” from 49% to 67%.
Culture
62 Glassdoor reviews – 3.6/5
•67% would recommend to a friend
•68% approve of CEO Karl Redenbach
•While Livetiles is trending in a positive direction I’m still not overly optimistic about company culture and my suspicions management may be encouraging the posting of positive reviews was supported (in bold below).
Poor reviews:
<1 year: “The CEO was so disrespectful in words, tones, actions and deeds. He had absolutely no respect or regard for people, their personal lives or their time. He was known to throw things at employees, whatever he may get his hands on to.”
<1 year: “Company initiatives to flood glassdoor with fake ratings because the real ones are so bad. Remember that Karl didn't forego his cost of living allowance when he cleared $1.5m while everyone else was working a partial week. That is your leader. Anyone in leadership still working at LiveTiles knows their behavior wouldn't be tolerated in another company. Enjoy it while you can, because the money can't last forever. How are those options treating you?”
23/03/21 “…A highly dysfunctional startup with no clear vision It could be a great company with better leadership.”
18/01/2021 “Open bar…. Favoritism leaning towards young, attractive, and/or Australian staff.”
30/10/20 “Things at LiveTiles are not OK. Copious amounts of money are spent on social events in the name of ‘team building’ and ‘culture’. Work environments lack any formal HR or leave management and most higher-ranked staff easily get away with perpetuating toxic environments. Diversity is an illusion and plays directly into tokenism, particularly when it suits "outreach" agendas. Money comes from seemingly nowhere, but is generally from sales of products that don't even exist. "Opportunities for career growth" are just as nonexistent and the performance management process is dangerously stacked against the employee. You will be pushed to your breaking point and told that it's all ok because "that's just our culture".
30/10/20 “Started out good, now heading downhill” “…all our suggestions are ignored” “We were asked to accept a decrease in salary during coronavirus (which I thought was reasonable) but I've just seen the annual report and the CEO kept 100% of his Cost of Living Allowance.”
23/04/20 “No loyalty” “One such layoff being right before Christmas - super classy” “Also a super fratty culture”
25/02/20 “Vaporware distributors. AVOID!!” “There are no real products. Terms like "AI" are used incessantly yet none exists in any product made or acquired by LiveTiles. The "leadership" team is usually in some exotic part of the world, far away from wherever actual work is being done. Various departments of the business are left selling watered down solutions (at best) because most of the VC money goes into sales and leadership "off-sites". Just look at the stock over the past 2 years. Mergers & acquisitions cover up a lack of organic revenue because no one wants LiveTiles products.”
07/02/2020 “Lay off’s right before Christmas!”
01/03/20 “If you aren’t in the circle you go nowhere” “They will always take a senior employees word over yours even if you have proof to back it up. None of the little people are listened to. You could sacrifice alot to get the job done and get not so much as a thanks.”
27/03/19 “Not as it appears to be” lack of management, “lots of acquisitions but no structure”, bonuses taken away from employees, “favoratism is ever apparent”
21/03/19 “Company needs to treat their stuff with respect and follow their own values.”
13/12/18 “It was like working for the Australian Trump Family” “Leadership. From the C-Suite to the VP level, there is no clear, consistent communication, or actual leadership. Passive-aggressive is the best way to describe the overall style. If you're not part of the small inner circle, you're screwed. Blatant lies about bonus and stock plans. Cooked books to make numbers.”
04/12/18 “No structure, and I mean absolutely none internally. The product is half baked but sold as full baked. Pricing is literally whatever the customer will pay. If you’re offered a sales position, you MUST understand you’re selling an unproven, untested, zero case study concept of possibilities, it’s a stretch to even call it a real product.”
03/12/18 “Making quarterly layoffs to boost the balance sheet and hide poor sales and business decisions cannot be the long term solution.”
24/09/18 “it's completely lost its form, rushing half baked software into the market and forcing people to sell it to unhappy and frustrated customers”
27/10/17 “Avoid at all costs” “People get away with sitting on a couch all day with your feet up and surf insta while pretending to work since management is never around and no one seems to be running the company!”
Reviews also mention a fully stocked bar in the office. https://www.youtube.com/watch?v=6V_sHlVQkbs
LVT has a $12.4M “litigation cost” on their income statement
LiveTiles sued for $33m by employee alleging he was sacked for being old, having cancer
"which in reality was a culture of discrimination against individuals who were older, disabled, and United States citizens…prevented him from participating in the culture, marked by excessive drinking and raucous public behaviour.”
“building a fully stocked bar with hard liquor and two [tapped] kegs in the lunch area which was ‘always open’”
https://www.glassdoor.com.au/Reviews/LiveTiles-Reviews-E1390234.htm
https://www.afr.com/technology/livetiles-sued-for-33m-by-employee-alleging-he-was-sacked-for-being-old-having-cancer-20171121-gzphad
https://www.arnnet.com.au/article/630285/aussie-software-vendor-faces-down-legal-challenge-us/
https://www.crn.com.au/news/founders-of-melbourne-sharepoint-reseller-nsynergy-settle-lawsuit-over-assets-554999
Management
Karl Redenbach CEO (Co-founder) $977,160 + discretionary cash bonus capped at 100% of base salary subject to meeting performance targets
Peter Nguyen-Brown (Co-founder) $700,000 + discretionary cash bonus capped at 100% of base salary subject to meeting performance targets
These salaries seem high considering the company had a net loss of $17M (excluding litigation costs) for FY21 and a cash outflow of $11M (excluding litigation costs).
On a positive note, both achieved their STIs but offered to forego their bonuses for FY21
