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> If they felt inclined to just shut down rather than try to make ends meet, that's their prerogative. You do understand that the alternative is asking people
by klyrs 3y ago
> If they felt inclined to just shut down rather than try to make ends meet, that's their prerogative.
You do understand that the alternative is asking people to work for below-market rates, right? At a non-profit where there will never be an "exit strategy" by law?
So you're the boss now, you've got $75k to offer a new CFO. Where do you find a qualified candidate, and why do they want to work for you and not a comparable organization offering twice as much?
Sometimes, shutting down is the smart move.
- Dalewyn 3y agoThe red amounts to around $190,000.00. Let's round that up to $200,000.00 for good margin. If the five executives each took a $40,000.00 reduction in their pay (and that's over the course of a year, mind), that alone puts them back in the black. $40,000.00 isn't a small amount to take off your paychecks, but relatively speaking it's a pittance when the reward is continuing operations and what your paycheck was and would be. So getting the books straight wasn't that difficult, especially if the people concerned were passionate in their cause. This was a non-profit, after all. If they want to shut down instead, that's within their rights but it's nonetheless perplexing they gave up so quickly.
- klyrs 3y agoSincerely: you don't sound very business-savvy, if you think five executives are just gonna eat a 20% pay cut like that.
- Dalewyn 3y agoIf executives kill their organization because they take out too much in pay relative to revenue and other costs, yeah they aren't very business savvy indeed.
- klyrs 3y agoBain Capital disagrees!
- readthenotes1 3y agoBain Capital only destroyed other businesses. The business of plundering other businesses remained solvent.
- klyrs 3y agoFascinating. An individual pirate is a business slouch; a team of pirates is a business savant?
- Dalewyn 3y agoBusiness is fundamentally a question of how to rip someone off without pissing them off.
- Apocryphon 3y agoTo bring this discussion full circle, sounds like those executives were quite business-savvy after all.
- Apocryphon 3y agoMaybe that compensation was tied to some gameable metric like adjusted EBITDA as so many startups do. Or free cash flow like at Warner Brothers. https://variety.com/2024/biz/news/warner-bros-discovery-david-zaslav-2023-compensation-pay-1235974254 https://variety.com/2024/biz/news/warner-bros-discovery-davi...