Tim he is being paid twice. Whether that's good/bad is a different question. Problem with your argument is that he's being paid to allocate investors' capital as a full time job by his investors and he's getting paid by shareholders to be a full time CEO --- in a business where the capital is now being disbursed and actual 'operations' are in run-down. I don't like that because there's no way he works 2x 100% that he's getting paid for. Looking at it another way, both roles could be seen as capital allocation roles that can be done in 1x100% but then I think it would be fairer to pay him no base for Syte and only a carry on the increase in BV, sustained over, say 3 years (i.e. 3 - 5 year average increase in BV).
On the fligpside, the .048 offer was open to all qualified investors if I recall correctly.
C.
I beg to differ that he is getting paid twice to manage the same money. They are two separate issues it is just that the same person is doing both. He is getting paid as a fund manager to allocate capital. He is also getting paid as the CEO which entails a whole lot more than managing the company's capital. Being in that situation as a part time CEO I can attest to the different use of time. It is not an overlap. I suspect you would have no problem if a hired CEO got paid that amount. To expect him to work for nothing when you would happily pay someone else shows the rationale of your argument is flawed.
Not necessarily true. I can't speak for what is happening at Sitestar, as I don't know the facts fully, and I'm not there watching operations daily. But speaking for myself:
- I'm in the office from 10am to 7-8pm most days, unless I have meetings downtown...about 70% of that time is PDH and 30% is CMC.
- I'm also up around 8am to check emails and quick calls before I head to the office.
- When I get home usually around 7:30-8:30pm, I have dinner, put on hockey while I read 10-Q's & 10-K's, run screens, look for ideas, etc for CMC, answer emails till 1-2am.
- Then I'm also usually in the office one day on the weekend for at least 6-8 hours (usually Saturdays) and then I'm working for 3-4 hours on Sunday from my home office on CMC stuff while football is on.
- I go into the office on holiday Mondays, even when the building is closed to staff.
- I don't really take vacations...usually I add one day here or there on business trips.
- I generally eat a late breakfast at 11am and a late lunch at around 3pm...all on my desk, unless someone wants a lunch meeting...but I prefer coffee meetings so I don't waste much time.
Now that I actually think about what I do, I work pretty f**king hard! And at times it feels like it. But most of the time, I feel very fortunate doing what I'm doing and I love it. That being said, if anyone begrudges me taking a fixed $99,000 salary because I'm CEO, even though I control a lot of the stock, they can bugger off.
I get some 60-70 emails a day...sit on 4 corporate boards...2 charitable boards...usually 4-8 calls a day...7 full-time staff and another 14 staff through associate investments we are involved with...4 public earnings filings a year, a public company audit, two fund audits, numerous press releases, filings, statements...payroll and payable twice a month...8 corporate tax returns, two fund tax returns, two general partner tax returns, CMC's tax return...contracts, agreements, settlements, other legal documents...audit committee meetings, corporate governance meetings...networking events, annual PDH FFH dinner, company events, Pabrai Funds meeting...meetings with potential investments, business consultants bringing a potential acquisition, meetings with young managers, business people, CoBF readers, etc...the list can go on and on. Wow!
Cheers!
