I've seen this before in business plans and such... the being paid in preferred shares part is new to me; I've seen it as deferred compensation accumulating as

I've seen this before in business plans and such... the being paid in preferred shares part is new to me; I've seen it as deferred compensation accumulating as a liability for the company to be paid in cash at some later date. I suppose being paid in preferred shares makes sense if you are expecting acquisition or a later VC rounds, whereas deferred cash comp. makes sense in a cash-only organic growth situation, and gets factored into your break-even calcs.