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Compensation has very specific meaning, though. In a startup, compensation packages for executives (especially the CEO) will be approved by the board, which pr
by PragmaticPulp 5y ago
Compensation has very specific meaning, though.
In a startup, compensation packages for executives (especially the CEO) will be approved by the board, which probably includes lead investors.
If the CEO is negotiating a specific compensation but then doing anything to pay themselves outside of the compensation channels, it's nearly impossible to do this in a way that isn't somewhat dishonest or misleading.
Unless, of course, they go to the board and negotiate a bonus for themselves through normal compensation channels.
But no, literally just paying yourself company money because you decided you were underpaid in the past is a huge no-no, no matter how justified you feel as CEO. Executive compensation always always always goes through the board.
- CPLX 5y agoYes of course. Turns out the CEO in question was engaged in deception and self-dealing and self-enrichment without consent of shareholders. Sounds like a good reason to back out of a deal. Unlike the reason you originally stated which was excessive compensation. As I pointed out that’s not a good reason. Clearly there was more to the story.