Additional Pay for Active Founders
● What is fair & competitive pay for one or more owners who are also active executives?
An active employee CEO among a set of otherwise passive founders felt she should receive compensation in addition to the distributions governed by the LLC operating agreement. Ascend helped negotiate a principled, well-founded deal involving new salary and bonus opportunities to properly reward her as an active player – while maximizing alignment with best interests of all owners.
Ascend’s experience with past solutions and grasp of the key issues helped all owners buy-in to the process from the beginning. Ascend’s thoroughness of analysis and innovative crafting of the plan then helped the owners focus fully on the real issues and their true common goal – the increasing success of the company.
In any private company with active and passive investors, fairness, good governance and proper reflection of the true costs of doing business call for competitive, role-based compensation in addition to owner distributions.