> for example stock based compensation will likely go away in a private company, thus raising profitability

They're paying out vests on the sales price in cash, which was higher than the value of the company. Normally equity comp places the price fluctuation risk on the employee, but in this case, they're directly eating this cost.

If they don't offer salaries that are competitive with other companies total comp, they will bleed employees, and won't be able to hire talented engineers.

So, no, this really doesn't help, and if anything it increases their direct costs.