Zoom founder Eric Yuan transfers $6bn of his shares

Zoom founder Eric Yuan has transferred about 18 million of his shares worth more than $6bn (£4.4bn), according to a regulatory filing.

Mr Yuan, who is also chief executive of the video-conferencing platform, moved roughly 40% of his stake in the company last week.

The shares were shown as gifts to unspecified beneficiaries last week.

Mr Yuan has seen his personal wealth rocket as Zoom became a household name during pandemic lockdowns.

An increasing number of students and professionals connected online boosting the fortunes of Zoom and its founder.

Mr Yuan started Zoom in 2011 and listed it on the US stock market in 2019, making him a billionaire. He is currently worth $13.7bn, according to Forbes.

A Zoom spokesperson said the transfers were related to Mr Yuan’s estate planning practices. “The distributions were made in accordance with the terms of Eric Yuan and his wife’s trusts.”

Zoom’s shares have nearly tripled in the past 12 months and the company has a market valuation of around $100bn.

“Zoom founder Eric Yuan’s decision to transfer more than a third of his stake will raise some eyebrows,” Edward Moya, at trading firm Oanda, told the BBC.

“While a Zoom spokesperson noted that the transfer is consistent with the Yuans’ typical estate planning practices, investors will be nervous until we find out who is the recipient of the stock,” he added.

“Yuan is only 51, married and has three children, so the distribution of his wealth could be viewed as rushed.”

Video Chat; Zoom Fatigue

top view of silver macbook beside a shopping cart and black friday sale signage

Video chat is helping us stay employed and connected. But what makes it so tiring – and how can we reduce ‘Zoom fatigue’?

Your screen freezes. There’s a weird echo. A dozen heads stare at you. There are the work huddles, the one-on-one meetings and then, once you’re done for the day, the hangouts with friends and family.

Since the Covid-19 pandemic hit, we’re on video calls more than ever before – and many are finding it exhausting.

But what, exactly, is tiring us out? According to Gianpiero Petriglieri, an associate professor at Insead, who explores sustainable learning and development in the workplace, and Marissa Shuffler, an associate professor at Clemson University, who studies workplace wellbeing and teamwork effectiveness, when asked if video chat is harder compared to face to face communication.

Being on a video call requires more focus than a face-to-face chat, says Petriglieri. Video chats mean we need to work harder to process non-verbal cues like facial expressions, the tone and pitch of the voice, and body language; paying more attention to these consumes a lot of energy. “Our minds are together when our bodies feel we’re not. That dissonance, which causes people to have conflicting feelings, is exhausting. You cannot relax into the conversation naturally,” he says.

Delays on phone or conferencing systems of 1.2 seconds made people perceive the responder as less friendly or focused

Silence is another challenge, he adds. “Silence creates a natural rhythm in a real-life conversation. However, when it happens in a video call, you became anxious about the technology.” It also makes people uncomfortable. One 2014 study by German academics showed that delays on phone or conferencing systems shaped our views of people negatively: even delays of 1.2 seconds made people perceive the responder as less friendly or focused.

An added factor, says Shuffler, is that if we are physically on camera, we are very aware of being watched. “When you’re on a video conference, you know everybody’s looking at you; you are on stage, so there comes the social pressure and feeling like you need to perform. Being performative is nerve-wracking and more stressful.” It’s also very hard for people not to look at their own face if they can see it on screen, or not to be conscious of how they behave in front of the camera.

How are the current circumstances contributing?

Yet if video chats come with extra stressors, our Zoom fatigue can’t be attributed solely to that. Our current circumstances – whether lockdown, quarantine, working from home or otherwise – are also feeding communication,

A 2014 study found that delays on phone or conferencing systems shaped our views of people negatively (Credit: Getty Images)

Petriglieri believes that fact we feel forced into these calls may be a contributory factor. “The video call is our reminder of the people we have lost temporarily. It is the distress that every time you see someone online, such as your colleagues, that reminds you we should really be in the workplace together,” he says. “What I’m finding is, we’re all exhausted; It doesn’t matter whether they are introverts or extroverts. We are experiencing the same disruption of the familiar context during the pandemic.”

Then there’s the fact that aspects of our lives that used to be separate – work, friends, family – are all now happening in the same space. The self-complexity theory posits that individuals have multiple aspects – context-dependent social roles, relationships, activities and goals – and we find the variety healthy, says Petriglieri. When these aspects are reduced, we become more vulnerable to negative feelings.

Imagine if you go to a bar, and in the same bar you talk with your professors, meet your parents or date someone, isn’t it weird? That’s what we’re doing now – Gianpiero Petriglieri

“Most of our social roles happen in different places, but now the context has collapsed,” says Petriglieri. “Imagine if you go to a bar, and in the same bar you talk with your professors, meet your parents or date someone, isn’t it weird? That’s what we’re doing now… We are confined in our own space, in the context of a very anxiety-provoking crisis, and our only space for interaction is a computer window.”

Shuffler says a lack of downtime after we’ve fulfilled work and family commitments may be another factor in our tiredness, while some of us may be putting higher expectations on ourselves due to worries over the economy, furloughs and job losses. “There’s also that heightened sense of ‘I need to be performing at my top level in a situation’… Some of us are kind of over-performing to secure our jobs.”

But when I’m Zooming my friends, for example, shouldn’t that relax me?

Lots of us are doing big group chats for the first time, whether it’s cooking and eating a virtual Easter dinner, attending a university catch-up or holding a birthday party for a friend. If the call is meant to be fun, why might it feel tiring?

Part of it, says Shuffler, is whether you’re joining in because you want to or because you feel you ought to – like a virtual happy hour with colleagues from work. If you see it as an obligation, that means more time that you’re ‘on’ as opposed to getting a break. A proper chat with friends will feel more social and there will be less ‘Zoom fatigue’ from conversations where you’ve had a chance to be yourself.

It doesn’t matter whether you call it a virtual happy hour, it’s a meeting, because mostly we are used to using these tools for work – Gianpiero Petriglieri

Big group calls can feel particularly performative, Petriglieri warns. People like watching television because you can allow your mind to wander – but a large video call “is like you’re watching television and television is watching you”. Large group chats can also feel depersonalising, he adds, because your power as an individual is diminished. And despite the branding, it may not feel like leisure time. “It doesn’t matter whether you call it a virtual happy hour, it’s a meeting, because mostly we are used to using these tools for work.”

So how can we alleviate Zoom fatigue? 

Both experts suggest limiting video calls to those that are necessary. Turning on the camera should be optional and in general there should be more understanding that cameras do not always have to be on throughout each meeting. Having your screen off to the side, instead of straight ahead, could also help your concentration, particularly in group meetings, says Petriglieri. It makes you feel like you’re in an adjoining room, so may be less tiring.

In some cases it’s worth considering if video chats are really the most efficient option. When it comes to work, Shuffler suggests shared files with clear notes can be a better option that avoids information overload. She also suggests taking time during meetings to catch up before diving into business. “Spend some time to actually check into people’s wellbeing,” she urges. “It’s a way to reconnect us with the world, and to maintain trust and reduce fatigue and concern.”

Building transition periods in between video meetings can also help refresh us – try stretching, having a drink or doing a bit of exercise, our experts say. Boundaries and transitions are important; we need to create buffers which allow us to put one identity aside and then go to another as we move between work and private personas.

And maybe, says Petriglieri, if you want to reach out, go old-school. “Write a letter to someone instead of meeting them on Zoom. Tell them you really care about them.”

ZOOM CONQUERED VIDEO CONFERENCING

It is not out of place to ask “how did Zoom conquer video conferencing”?Zoom grew so quickly in 2020 that its brand became the default term for video conferencing. “Let’s use Zoom,” has become as as, “ Google it.” What in the world is responsible for that explosive growth in the face of competition from (other) brands like Cisco, Microsoft and Google?

COULD IT BE COVID19 PANDEMIC?

The Covid-19 crisis caused an enormous surge in demand for video communications with so many people unable to meet in person, but that alone doesn’t explain Zoom’s ascendance. They were growing rapidly long before Covid-19 shut down offices, events, and travel. Zoom had already surpassed its larger competitors in the years preceding the pandemic:

According to the 2020 Businesses @ Work report from Okta “Zoom was the #1 fastest growing video conferencing app in 2016, and it hasn’t slowed down since. Over the past three years, Zoom has enjoyed an astounding 876% growth in number of customers in our network. For comparison, second-place Cisco Webex grew 91% over that same period.”

As with Amazon, the pandemic crisis simply accelerated Zoom’s already robust growth.

COULD IT BE ZOOM’S “Frictionless” MISSION?

Zoom’s mission statement us simple and straight forward “Make video communications frictionless.” At a time when most corporate mission statements try to acknowledge every priority and every stakeholder, this short, direct message stands out.

It is obvious that this statement provides clarity to every team member. If you are a developer, network expert, or any other Zoom employee, you know that any action you take should never increase customer effort or increase complexity. If you do, you’ll be contradicting Zoom’s reason for existence. In short, the simpler, the easier, the better.

Zoom was founded by Eric Yuan, who left Cisco’s Webex unit to focus on mobile-friendly video conferencing. Webex was the dominant video conference player before Zoom passed them.

The Cisco’s mission statement on their website which is “Shape the future of the Internet by creating unprecedented value and opportunity for our customers, employees, investors, and ecosystem partners.” This statement is so broad and jargon-laden that it provides no clear direction for team members. How could a developer or designer possibly know if a new feature or a interface design will “create unprecedented value and opportunity?” Will fixing something that customers complained about really “shape the future?” The mission statement, if I am permitted to say, is itself high friction.

Zoom grew more rapidly than its much larger competitors because it made things easy for its users. Easy to set up, easy to use, easy to change one’s background… maximum simplicity, minimum effort. But, in striving to make onboarding a user as simple as possible, Zoom skipped some security precautions.

One of these lapses made Mac computer webcams vulnerable to hackers. Another security hole allowed “zoombombing,” in which a hacker could enter and disrupt an ongoing video conference.

Not unlike fellow unicorn Uber, Zoom initially focused on exponential growth, not perfection. After its software was universally adopted, Zoom changed its code to beef up security.

Although security issues could have derailed the firm, Zoom’s growth continued without interruption.

The Zoom lesson

Taking on giants like Cisco, Microsoft, and Google might have seemed like a fool’s errand in Zoom’s early days. But, Yuan let one principle drive the firm’s efforts: make video conferencing as easy as possible for everyone. Minimize user effort. Eliminate complexity.