I beg to differ. Nobody is doing anyone a favor by being honest. You must be honest for your own good, so that you can sleep well and don’t go to jail, your kids can walk respectfully on the streets and no one points fingers at you or your family. Honesty should be the default option, and dishonesty an exception. A high salary doesn’t guarantee that a promoter is not stealing, nor does absence of salary automatically imply promoter is honest. Stealing comes from mindset, not from financial conditions.
I generally disapprove of profit-based salary to promoters. Of course, a reasonable salary can be a legitimate demand (equivalent to what will be paid to a professional CEO for the same work) even by a promoter who is working full time in his own company, but anything beyond that is unfair to minority shareholders. I don’t think promoters need to be incentivized with profit linked payouts in order to perform. They have to perform anyway for their own sake (and stake!)
(Disc.: No position, only for academic discussion)
Subscribe To Our Free Newsletter |