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(Bloomberg)   "Robin Hood" CEO, who raised minimum salary for employees to $70,000, may have only been preemptively covering his ass in response to a lawsuit over... wait for it... being an overcompensated CEO   (bloomberg.com) divider line
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2173 clicks; posted to Business » on 01 Dec 2015 at 9:59 PM (4 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



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2015-12-01 8:21:21 PM  
Unless you are embezzling, you can't be "overcompensated" for your job....
 
2015-12-01 8:42:24 PM  
FTFA: The lawsuit is light on details, but it claims that Price "improperly used his majority control of the company" to overpay himself, in the process reducing what Lucas was due.

Wait, what?
 
2015-12-01 8:45:10 PM  

HawgWild: FTFA: The lawsuit is light on details, but it claims that Price "improperly used his majority control of the company" to overpay himself, in the process reducing what Lucas was due.

Wait, what?


I'm going to use this argument and sue everyone I've ever worked for.
 
2015-12-01 10:15:13 PM  

LordZorch: Unless you are embezzling, you can't be "overcompensated" for your job....


You can be, and many are. For an extreme example, see the Enron executives who legally extracted $billions before the company imploded.

But this guy is not Enron. He is in fact paying the employees $70K or more.
 
2015-12-01 10:17:05 PM  

jaytkay: LordZorch: Unless you are embezzling, you can't be "overcompensated" for your job....

You can be, and many are. For an extreme example, see the Enron executives who legally extracted $billions before the company imploded.

But this guy is not Enron. He is in fact paying the employees $70K or more.


jayt whatever is the worst person ever and got votes
 
2015-12-01 10:18:34 PM  
I really think j is trying, but too much has been cast upon him too fast
 
2015-12-01 10:19:17 PM  

jaytkay: LordZorch: Unless you are embezzling, you can't be "overcompensated" for your job....

You can be, and many are. For an extreme example, see the Enron executives who legally extracted $billions before the company imploded.

But this guy is not Enron. He is in fact paying the employees $70K or more.


Enron fudged the books to boost the stock price.  They then handed out the stock to employees and executives.  The executives sold out early before the stock dropped, leaving everyone else holding worthless paper.  Well, they don't hand out paper anymore, so you can't even wipe your ass with it.
 
2015-12-01 10:28:48 PM  

enry: jaytkay: LordZorch: Unless you are embezzling, you can't be "overcompensated" for your job....

You can be, and many are. For an extreme example, see the Enron executives who legally extracted $billions before the company imploded.

But this guy is not Enron. He is in fact paying the employees $70K or more.

Enron fudged the books to boost the stock price.  They then handed out the stock to employees and executives.  The executives sold out early before the stock dropped, leaving everyone else holding worthless paper.  Well, they don't hand out paper anymore, so you can't even wipe your ass with it.


You can wipe your ass with a CEO however.  Anyone have addresses?

/don't actually post addresses mmmkay?
 
2015-12-01 10:29:13 PM  
Robin Hood CEO?

vignette4.wikia.nocookie.netView Full Size
 
2015-12-01 10:30:58 PM  

LordZorch: Unless you are embezzling, you can't be "overcompensated" for your job....


Only if you redefine "overcompensated" in a way that is wildly incompatible with its actual meaning.
 
2015-12-01 10:33:14 PM  
tl;dr
 
2015-12-01 10:33:35 PM  

enry: jaytkay: LordZorch: Unless you are embezzling, you can't be "overcompensated" for your job....

You can be, and many are. For an extreme example, see the Enron executives who legally extracted $billions before the company imploded.

But this guy is not Enron. He is in fact paying the employees $70K or more.

Enron fudged the books to boost the stock price.  They then handed out the stock to employees and executives.  The executives sold out early before the stock dropped, leaving everyone else holding worthless paper.  Well, they don't hand out paper anymore, so you can't even wipe your ass with it.


Right, but that was fraud, not "overcompensation" or whatever.
 
2015-12-01 10:33:41 PM  

HawgWild: FTFA: The lawsuit is light on details, but it claims that Price "improperly used his majority control of the company" to overpay himself, in the process reducing what Lucas was due.

Wait, what?


If one person owns 51% of a company, and another owns 49%, the majority owner can't just double his own salary or sell himself company assets.  Minority shareholders can sue over stuff like that.
 
2015-12-01 10:35:16 PM  

jaytkay: You can be, and many are. For an extreme example, see the Enron executives who legally extracted $billions before the company imploded.


You must have missed a few days in your GED Law class.
 
2015-12-01 10:37:04 PM  

BMFPitt: jaytkay: You can be, and many are. For an extreme example, see the Enron executives who legally extracted $billions before the company imploded.

You must have missed a few days in your GED Law class.


OK. Did enry describe the Enron situation accurately?
 
2015-12-01 10:38:23 PM  

jaytkay: OK. Did enry describe the Enron situation accurately?


Pretty much.
 
2015-12-01 10:53:40 PM  
While I'd rather do this than trust falls, what the hell is planking supposed to accomplish?
bloomberg.comView Full Size

/Making you appreciate the janitorial help more?
 
2015-12-01 10:58:12 PM  

Vlad_the_Inaner: While I'd rather do this than trust falls, what the hell is planking supposed to accomplish?
[www.bloomberg.com image 850x567]
/Making you appreciate the janitorial help more?


Looks like they're about to do hand fart noises ...
 
2015-12-01 11:07:11 PM  

Vlad_the_Inaner: While I'd rather do this than trust falls, what the hell is planking supposed to accomplish?
[www.bloomberg.com image 850x567]
/Making you appreciate the janitorial help more?


Apparently it helps keep meetings short.
 
2015-12-01 11:10:33 PM  

Vlad_the_Inaner: While I'd rather do this than trust falls, what the hell is planking supposed to accomplish?
[www.bloomberg.com image 850x567]
/Making you appreciate the janitorial help more?


Ugh, why not just let people do their jobs and go home to their families?

/the only acceptable corporate outings involve open bars
 
2015-12-01 11:15:49 PM  

Vlad_the_Inaner: While I'd rather do this than trust falls, what the hell is planking supposed to accomplish?


That is a hard position to hold. You get really tired and shake and wobble pretty fast.

My guess is he's trying to teach an attitude of, "hang in there, tough it out, yes it sucks but you can beat it!"

/ That's my experience from fitness classes
 
2015-12-01 11:18:05 PM  

Vlad_the_Inaner: While I'd rather do this than trust falls, what the hell is planking supposed to accomplish?
[www.bloomberg.com image 850x567]
/Making you appreciate the janitorial help more?


We all eat the muffins and then we meet on the other side of this veil of tears.
 
2015-12-01 11:27:57 PM  

Vlad_the_Inaner: While I'd rather do this than trust falls, what the hell is planking supposed to accomplish?
[www.bloomberg.com image 850x567]
/Making you appreciate the janitorial help more?


See caption: Gravity staffers plank during meetings to encourage each other to speak quickly.

I guess you can't get off your belly until you've said your piece, or something.
 
2015-12-01 11:30:56 PM  
Wow, Price just totally fell apart when the reporter called him out on the lawsuit's timing.

Then the pieces melted into a puddle of goo when his ex-wife's account of being waterboarded was read to him.
 
2015-12-01 11:33:19 PM  

BarkingUnicorn: See caption: Gravity staffers plank during meetings to encourage each other to speak quickly.

I guess you can't get off your belly until you've said your piece, or something.


They're on their toes and elbows. I think you have to speak before you fall on your belly.
 
2015-12-01 11:59:54 PM  
The Establishment doesn't allow dissent...for long
 
2015-12-02 12:21:51 AM  

zerkalo: The Establishment doesn't allow dissent...for long


This. They need to drown any success stories about responsible corporate behaviour.
 
2015-12-02 1:07:01 AM  

jaytkay: BarkingUnicorn: See caption: Gravity staffers plank during meetings to encourage each other to speak quickly.

I guess you can't get off your belly until you've said your piece, or something.

They're on their toes and elbows. I think you have to speak before you fall on your belly.


Fark that shiat, I'd quit the first time someone suggested planking.
 
2015-12-02 1:08:40 AM  

BMFPitt: If one person owns 51% of a company, and another owns 49%, the majority owner can't just double his own salary or sell himself company assets. Minority shareholders can sue over stuff like that


Thing is, there's a corporate board, and it approved it by voting on it.
 
2015-12-02 1:15:23 AM  
I truly tried to find something new in this article that hasn't been discussed ad nauseam since he pulled the 70k deal.  And I can't.
 
2015-12-02 1:23:19 AM  
Thing is, there's a corporate board, and it approved it by voting on it.

The board is him and his brother.
 
2015-12-02 1:24:55 AM  

WhyteRaven74: BMFPitt: If one person owns 51% of a company, and another owns 49%, the majority owner can't just double his own salary or sell himself company assets. Minority shareholders can sue over stuff like that

Thing is, there's a corporate board, and it approved it by voting on it.


The board consists of him and his brother. He is the majority owner, about 70%. Price was sued by his older brother Lucas, who owns about 30 percent of Gravity

FTA: "I have never given myself a raise without unanimous, full board approval....That means we both voted the same way. Lucas Price and Daniel Price, the two board members."
 
2015-12-02 1:47:23 AM  

The_Six_Fingered_Man: WhyteRaven74: BMFPitt: If one person owns 51% of a company, and another owns 49%, the majority owner can't just double his own salary or sell himself company assets. Minority shareholders can sue over stuff like that

Thing is, there's a corporate board, and it approved it by voting on it.

The board consists of him and his brother. He is the majority owner, about 70%. Price was sued by his older brother Lucas, who owns about 30 percent of Gravity

FTA: "I have never given myself a raise without unanimous, full board approval....That means we both voted the same way. Lucas Price and Daniel Price, the two board members."


And then the article goes on to discuss a possible history of domestic violence that wasn't even directly articulated by his ex-wife. It reads like a hit piece and reminds me that people really, really don't like his salary idea.

On the other hand, if he did treat his ex-wife that way, he's a scumbag who should be in jail.
 
2015-12-02 4:13:29 AM  

LordZorch: Unless you are embezzling, you can't be "overcompensated" for your job....


IANAL, but if that statement is true then any majority shareholder could appoint himself CEO, take all of a company's profits as compensation, and screw the minority shareholders. Likewise, if a set of shareholders constituting a majority wanted, they could make themselves officers and loot the company via pay and others would be powerless to stop it. That doesn't sound like something the law would countenance and the fact that it doesn't happen regularly leads me to think you're mistaken.
 
2015-12-02 5:03:04 AM  

injury: Don't forget the rest of it "Hollon says that's "inaccurate" and that Price "paid himself excessive compensation for a number of years ... over Lucas's objections." "

one of the 2 shareholders are lying. With the timing of the raises after being sued I know who I'm suspecting.


The one who can't or won't produce the minutes of the meetings or records of other discussions in which the raises were discussed?
 
2015-12-02 6:29:59 AM  
Payroll, even to equity partners, is an expense. Bigger salaries for little brother and friends, reduces the End of Year Profit Divy for the minority partner.
 
2015-12-02 6:47:58 AM  
I am just as astonished as the rest of you, what is this 'overcompensated' word and how does it have anything to do with the CEO title?!
 
2015-12-02 7:09:01 AM  

HawgWild: FTFA: The lawsuit is light on details, but it claims that Price "improperly used his majority control of the company" to overpay himself, in the process reducing what Lucas was due.

Wait, what?


Yes, English is a difficult language.

Let me break it down for you.


He made the potential profits that he would have to share, dissappear, by given them all to himself by calling it wages.

That's what the suit claims anyway.
 
2015-12-02 8:12:12 AM  

LordZorch: Unless you are embezzling, you can't be "overcompensated" for your job....


This will be good to know during the next thread about teacher's salaries.
 
2015-12-02 8:49:03 AM  

The_Six_Fingered_Man: WhyteRaven74: BMFPitt: If one person owns 51% of a company, and another owns 49%, the majority owner can't just double his own salary or sell himself company assets. Minority shareholders can sue over stuff like that

Thing is, there's a corporate board, and it approved it by voting on it.

The board consists of him and his brother. He is the majority owner, about 70%. Price was sued by his older brother Lucas, who owns about 30 percent of Gravity

FTA: "I have never given myself a raise without unanimous, full board approval....That means we both voted the same way. Lucas Price and Daniel Price, the two board members."


My guess is that it's a combination of two things, assuming the brother actually did vote for it:

The brother probably claims he was strong-armed into going along with it, and/or he realized that compensation consultants are almost exclusively complete and utter bullshiat.  They get hired to justify absurd pay packages for the person who hired them.
 
2015-12-02 8:59:42 AM  

LordZorch: Unless you are embezzling, you can't be "overcompensated" for your job....


Yes you can when you have a partner and all compensation must be agreed on before given to said partner.

Makes sense, I said this sounds shady to start with when it was first announced.
 
2015-12-02 9:06:55 AM  

abhorrent1: tl;dr


It seems most people didn't, like usual on fark.

He kept claiming the lawsuit was in retaliation to his raising all the wages yet he was served with the lawsuit before he ever raised their wages and even responded to it before he put on his act for papers and network he knew would slant the article his way. Sounds like he was paying himself bonuses not approved and got caught then thought up this brilliant strategy to make himself look like the victim.

It would have worked if someone hadn't written this article but then the writer didn't count on people being stupid and not reading such a long piece so most punched out before it go down to the part where he ignored the question and refused to answer anything about proving him wrong.

In this age if you don't sum it up in two paragraphs people tune out.
 
2015-12-02 9:11:19 AM  

little big man: zerkalo: The Establishment doesn't allow dissent...for long

This. They need to drown any success stories about responsible corporate behaviour.


Read the farking article, it's not success, he only did this to cover shiat up and to reduce any payment to a rightful holder in the profits in the company while boosting his own pay through bonuses.
 
2015-12-02 9:15:09 AM  

WhyteRaven74: BMFPitt: If one person owns 51% of a company, and another owns 49%, the majority owner can't just double his own salary or sell himself company assets. Minority shareholders can sue over stuff like that

Thing is, there's a corporate board, and it approved it by voting on it.


That's like saying it's a card game if one sides deck is all aces while the other works from a regular 52 card deck, if shiats stacked in your favor then you can always get shiat approved. Sound like his brother invested money and had a minority stack, others who were on the board had a lesser stack and sounds like no financial gain to lose by voting for his shiat.

Kid got caught with his hand in the cookie jar and tried this ploy to make himself look like a saint when in reality he was stealing money the entire time.
 
2015-12-02 9:27:48 AM  

WhyteRaven74: Thing is, there's a corporate board, and it approved it by voting on it.


Remind the class where you got your mail-order JD from, please.
 
2015-12-02 10:05:28 AM  
Standard operating procedure. Some guy proving you can be generous to workers and still be profitable? Smear him.
 
2015-12-02 10:17:49 AM  

MagicianNamedGob: Standard operating procedure. Some guy proving you can be generous to workers and still be profitable? Smear him.


Or more like "diluting minority shares by exceeding industry standard payscales."
 
2015-12-02 10:37:02 AM  

HawgWild: FTFA: The lawsuit is light on details, but it claims that Price "improperly used his majority control of the company" to overpay himself, in the process reducing what Lucas was due.

Wait, what?


His brother was a minority shareholder and was owed a share of the profits, but that share was diminished by his brother using his majority control to pay himself an excess salary. Thus, the overall profits were reduced. Thus, the brother received less money than he should have.

In closely held corporations, there are protections in place for minority shareholders. This sounds like a classic example of that.

Whether this is a valid case or not is a separate issue.
 
2015-12-02 10:51:13 AM  
Aren't lawsuits designed to get the defendant to change their behavior?  Didn't this lawsuit do just that?  WHAT'S THE FARKING PROBLEM THEN?


Oh, right, it's a capitalist rag that has to discredit a CEO's plan to get other CEO's to treat employees fairly. Can't be having that!
 
2015-12-02 11:08:13 AM  

drewsfarkthrowaway: Aren't lawsuits designed to get the defendant to change their behavior?  Didn't this lawsuit do just that?  WHAT'S THE FARKING PROBLEM THEN?


Oh, right, it's a capitalist rag that has to discredit a CEO's plan to get other CEO's to treat employees fairly. Can't be having that!


yup, lawsuits are designed to change behavior.

1. I steal all your shiat
2. you sue me, so I stop after stealing all your shiat
3. profit

are you a wizard?
 
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