Re:The CEO Paying Everyone $70,000 Salaries Has Something to...
by crpatino on Tuesday December 01, 2015 @02:36PM
(#10658086)
Not if he were the managing partner (and majoritary owner).
But agreed. If this were a public company, stockholders would probably be very unhappy that half of their earnings are being poached by some profesional executive with no skin in the game.
Re:The CEO Paying Everyone $70,000 Salaries Has Something to...
by jonknee on Tuesday December 01, 2015 @02:55PM
(#10658253)
But since he is the majority stockholder it makes perfect sense. It's his money one way or the other.
Re:The CEO Paying Everyone $70,000 Salaries Has Something to...
by you_eeeeeediot on Tuesday December 01, 2015 @02:41PM
(#10658143)
Glad you posted that, I knew something was clearly out of whack with his compensation just based on revenue alone it did not make sense.
The article tries to paint an elaborate picture, but ultimately fails on all counts to point out the most basic problem with this story and that might have shed additional light on his motivations.
Re:The CEO Paying Everyone $70,000 Salaries Has Something to...
by jonknee on Tuesday December 01, 2015 @02:39PM
(#10658129)
Why? He was also the majority shareholder.
Re:The CEO Paying Everyone $70,000 Salaries Has Something to...
by zymhan on Tuesday December 01, 2015 @02:43PM
(#10658160)
Because taking 50% of the money your company has to invest in itself as pay seems awfully selfish and short-sighted.
Re:The CEO Paying Everyone $70,000 Salaries Has Something to...
by jonknee on Tuesday December 01, 2015 @02:53PM
(#10658244)
50% of the profit after business expenses... There are tons of small businesses run this way, nothing especially wrong with it. You can do things differently when you control the shares instead of a bunch of VCs who want to pump it up so they can exit big or go home early.
> At private companies with sales like Gravity’s total revenue, salary and bonus for the top quartile of CEOs is $710,000, according to Chief Executive magazine’s annual compensation survey. At companies with sales like Gravity’s net revenue, the top quartile pay falls to about $373,000. At companies with a similar number of employees as Gravity, the top quartile of CEOs makes $470,000 in salary and bonus. The CEO of JetPay, a publicly traded competitor that processes a similar volume as Gravity, received $355,000 in 2014.
$1.1 million on CEO salary sounds ridiculous given a $2.2m profit.